IMF considering participation in EU bailout fund [View All]

[OhioChick]

Source: Reuters

Tue 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

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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