Source:
ReutersTue Oct 25, 2011 12:43pm EDT
(Reuters) - The International Monetary Fund is considering taking part in a special investment vehicle being proposed by the euro zone bailout fund but has not made a decision yet, euro zone officials said on Tuesday.
"The IMF has indicated that they are considering it -- they have not taken a position," one euro zone official said. "It will all depend on the whole package."
Euro zone leaders are expected to approve a plan on Wednesday to increase the fire power of the European Financial Stability Facility, a 440 billion euro bailout fund, without euro zone countries having to put more money into it.
Under the plan, the EFSF would create a special purpose investment vehicle (SPIV) which would issue debt and use the proceeds to buy bonds of distressed euro zone sovereigns on the secondary market or extend loans to at-risk governments.
Read more:
http://www.reuters.com/article/2011/10/25/us-eurozone-imf-leveraging-idUSTRE79O5L420111025
Will US Be Drawn Into Euro Bailout Fund?Here’s your quick translation of the report that the International Monetary Fund is “considering” a plan to back a special investment vehicle being proposed as part of the expansion of the European Financial Stability Facility.
Translation: The US taxpayer may wind up funding the EFSF bailout fund. http://www.cnbc.com/id/45035005