On Friday, Treasury Secretary Timothy Geithner will hold talks with European finance ministers in Poland, aimed to leverage the European Financial Stability Facility (EFSF) in order to improve its effectiveness against the fight over the region's debt load.
It is believed that Geithner will propose changes in the 440 billion euro bailout fund set last May 2010, including the possibility that the mechanism may be used as an emergency lending tool, similar to the one set-up by the U.S. Treasury and the Fed in 2008, helping to ease the current tightness of the credit market in the European Union.
"Geithner will probably insist on the importance of leverage to have more funds to ringfence the big Europeans, Italy and Spain, and to find a solution for Greece," one EU official told Reuters ahead of the meeting in Wroclaw, Poland.
By
M.Zohaib Gadit
Forex Trading Consultant
No comments:
Post a Comment
Feel free to comment.