IMF considering participation in EU bailout fund

[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

[msongs]

1. no more bailouts nt

[dipsydoodle]

2. Forget Wednesday

Todays meeting of Finance Ministers was scrubbed.

Eurozone rescue plan hits new hitch.

There has been another hiccup in the eurozone's plans to announce a final rescue deal in Brussels to try to end the turmoil in the euro area.

The Polish presidency of the EU has confirmed to the BBC that key meetings have been postponed.

The EU's 27 finance ministers and the 17-nation Eurogroup will not now meet on Wednesday, although a full emergency heads-of-government summit will happen.

This could mean a delay to final announcements on solutions.

http://www.bbc.co.uk/news/business-15451328

I have feeling that the background issue here is who by and large is holding the bag on the CDS's. If its the US then yes the US taxpayer may wind up funding the EFSF bailout fund.