Eu­ro­zone coun­tries mulling in­de­pen­dent res­cue fund

The Pak Banker - - International -

FRANK­FURT: Sev­eral Euro­pean coun­tries, in­clud­ing Ger­many, are work­ing on a per­ma­nent euro res­cue mech­a­nism that would in­clude the cre­ation of a new and in­de­pen­dent fund­ing in­sti­tu­tion, a press re­port said Thurs­day.

Ger­many is con­sid­er­ing a "Euro­pean sta­bil­ity, growth and in­vest­ment fund," ac­cord­ing to a govern­ment paper seen by the Sued­deutsche Zeitung daily.

The mooted body would ex­ist side-by-side with the Euro­pean Cen­tral Bank, would ben­e­fit from the same in­de­pen­dence and would be tasked with help­ing fi­nan­cially dis­tressed eu­ro­zone coun­tries un­der strict con­di­tions.

The Ger­man fi­nance min­istry ac­knowl­edged that a plan had been worked on by its staff but said it was not pol­icy.

"The idea expressed in the ar­ti­cle is in no way the of­fi­cial po­si­tion of the fi­nance min­istry or fed­eral govern­ment," it said in a state­ment.

At the last Euro­pean Coun­cil sum­mit in Brus­sels this month, gov­ern­ments agreed to es­tab­lish the frame­work for a fu­ture per­ma­nent eu­ro­zone res­cue fund by March, to en­sure the euro's long-term sta­bil­ity, the state­ment noted.

Sued­deutsche Zeitung said gov­ern­ments which needed to bor­row from the mooted fund would have to put up solid col­lat­eral such as gold re­serves or pri­vate bonds.

The doc­u­ment said such a fund would have an "un­lim­ited ca­pac­ity for re­fi­nanc­ing" and would be pro­posed to fi­nance min­is­ters in mid-Jan­uary.

In ad­di­tion to Ger­many, Fin­land, France, Ire­land and the Nether­lands are work­ing on pro­pos­als. Ger­man Fi­nance Min­is­ter Wolf­gang Schaeu­ble is to dis­cuss the plans with his French coun­ter­part Chris­tine La­garde on Thurs­day in Stras­bourg, re­port said. -Afp

JAMSHED­PUR: Tata Steel plant in Jamshed­pur is il­lu­mi­nated by an orange sky. In­dia's Tata Steel owns 24 per­cent of Aus­tralian coal miner Rivers­dale and is ru­moured to be con­sid­er­ing a ri­val bid, along with Rio Tinto and Brazil's Vale, which has al­ready made sig­nif­i­cant in­vest­ment of its own in Mozam­bique. -Afp

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