EFSF Guideline doc dets

Author: Pete Jackson | Category: Central Banks
  • EFSF can buy bonds on secondary market if EU country has sustainable debt, respects commitments to its deficit reduction and has a sustainable current account
  • Also must have no bank solvency problems and must make a request with agreement from the ECB and other EU Fin Mins
  • Amounts available would be equal to  lending capacity of the bail out fund remaining
  • Would then have ability to sell them back on the market, or use for repos with commercial banks
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