November 28, 2011
Euro zone finance ministers are to agree on Tuesday on details of leveraging their EFSF bailout fund so it can help Italy or Spain should they need aid, and are likely to approve the next tranche of emergency loans for Greece and Ireland.
Documents obtained by Reuters on Sunday showed the detailed guidelines for the European Financial Stability Facility (EFSF) were ready for approval by the ministers, opening the way for new operations and multiplying the fund's effective size.
The documents spell out rules for EFSF intervention on the primary and secondary bond markets, for extending precautionary credit lines to governments, leveraging its firepower and its investment and funding strategies.
"I would expect we will be in a position to approve the guidelines at a political level," a euro zone official involved in the preparations for the ministers' meeting said.