FRANKFURT (MNI) – The German government and five other Eurozone
member states with a triple A credit rating are considering issuing
bonds together, German daily Die Welt reported Monday, citing unnamed
highly placed EU officials.
The paper said that the money raised by the bonds would finance the
debts not only of the six AAA-rated countries — Germany, France,
Finland, the Netherlands, Luxembourg and Austria — but also help
provide financial assistance, under strict conditions, for Italy and
Spain.
The goal of the new bonds would be to stabilize the situation of
the AAA countries and “erect a credible firewall that calms the
financial markets,” the paper said.
The German Finance Agency would play a major role in the sale of
the bonds, which would carry an interest rate of 2% to 2.5%, the paper
said.
Since the bonds would not be “Eurobonds” jointly issued by all 17
Eurozone member states, they are being called “Elite bonds” or “Triple A
bonds” for working purposes, Die Welt reported.
–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
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