Arab Today, arab today eurozone unlocks crisis war chest as greece spain struggle
Last Updated : GMT 03:26:57
Arab Today, arab today
Arab Today, arab today

Eurozone unlocks crisis war chest as Greece, Spain struggle

Arab Today, arab today

Arab Today, arab today Eurozone unlocks crisis war chest as Greece, Spain struggle

Luxembourg - AFP

The eurozone on Monday unlocked its 500-billion-euro crisis war chest, the European Stability Mechanism, amid worries over Greece and as Spain agonised over whether to seek a full bailout. The launch of the $650-billion ESM -- immediately given an \'AAA\' rating by credit giant Fitch -- \"marks an historic milestone in shaping the future of monetary union,\" Luxembourg Prime Minister and fund chairman Jean-Claude Juncker said. Juncker spoke after the inaugural meeting of the ESM\'s board, made up of the finance ministers of the 17 countries that share the currency. The Eurogroup ministers then went into state-of-play talks on Greece and Spain expected to yield little fresh news. The permanent rescue fund, which was initially due to enter service on July 1 but was delayed by a challenge at the German Constitutional Court, is not yet operational. In a first stage it will contain 200 billion euros ($260 billion) once initial instalments of government capital are paid in by the end of the month. The ESM monies will build on top of resources left in a temporary fund, the European Financial Stability Facility (EFSF), taking combined lending capacity during the latter\'s wind-down to a total of 700 billion euros. European Commission President Jose Manuel Barroso said this was \"comparable only with the IMF,\" and Fitch said the fund\'s outlook was \"stable.\" ESM managing director Klaus Regling said it was his \"expectation\" that the war chest, like the temporary EFSF, would in time leverage up the fund\'s lending reach using complicated financing techniques. The EFSF raised about 40 percent of its assets from Asian investors on the back of eurozone government guarantees. Long anticipated, the ESM makes its formal debut 10 days before the European Union\'s 27 leaders meet in Brussels for talks expected to focus once again on problems around the Mediterranean. Spain would like the ESM to be able to recapitalise its banks directly, so as to lessen the sovereign debt load, but Germany, the Netherlands and Finland have said this will not be possible until a cross-border mechanism for bank balance-sheet supervision is in order. Madrid agreed a 100-billion-euro credit line with eurozone partners in June but, based on a series of audits, has suggested it may only need to take up to 40 billion of that amount. Bond yields and other market indicators have turned favourable again for Spain, reducing fears it will seek a full bailout. But it nonetheless has some 30 billion euros ($39 billion) in repayments due this month. German Finance Minister Wolfgang Schaeuble repeated in Luxembourg that \"Spain does not need a programme,\" underlining: \"That is what the Spanish government has said over and over again.\" French counterpart Pierre Moscovici, as has become standard, took a different view, saying: \"We respect the sovereignty of a big country like Spain, but we are ready to respond to any initiative that may be taken.\" On Greece, EU officials last week said Athens was unlikely even at an EU summit on October 18-19 to get a green light to resume talks following differences with the European Commission, European Central Bank and International Monetary Fund creditors. Greek Prime Minister Antonis Samaras said Friday that his country could not take more bitter medicine. If its next aid instalment of 31.5 billion euros ($40.6 billion) did not arrive soon, by November state coffers would be empty, he said. German Chancellor Angela Merkel is due in Greece on Tuesday, to what could be a hostile reception from those who see her as responsible for their problems. In neighbouring Cyprus on Monday, Barroso pressed the government to \"move rapidly\" on reform proposals in exchange for eurozone support there, first requested in June.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eurozone unlocks crisis war chest as greece spain struggle Arab Today, arab today eurozone unlocks crisis war chest as greece spain struggle

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday