Wroclaw, Poland/Frankfurt (Reuters)-finance ministers with Europe that cover Turner talks by the euro zone finance ministers last Friday the assistance funds to help solve the possibility of debt crisis.
Washington set up an emergency fund to support the global credit crisis in the loan. As tensions now in Europe, sign, the European central bank and the UK, Japan, and Switzerland on Thursday, to join the force in the fourth quarter to three months of dollar liquidity operation.
Take coordinated action to drive the euro and stock markets around the world, prompting speculation, European policymakers may take bold steps to deal with the crisis, and now has threatened to the eurozone's third largest economy, Italy.
On Thursday, after rising 2% in the world market in Asia last Friday. In Asia, Morgan Stanley world index rose 0.6%, for a week's high, this marks a weight gain for the fourth consecutive day. The euro last Thursday amid the strong dollar.
The international monetary fund chief, said the central bank's move, and is "what", because the world has entered into a dangerous crisis stage. She has repeatedly called for European countries to make capital restructuring of the bank.
Cover in Poland and the eu ministers Turner held talks, and will put forward, the European financial market stability fund, in May 2010 the 44 billion euro fund was established, in a similar way used to create in 2008 by the department of the Treasury and the fed's emergency loan fund thawing frozen credit markets, sources said.
"Cover Turner may insist on the importance of the leverage of more money to ringfence big Europe, Italy and Spain, and find solutions, for Greece, eu officials told Reuters in ahead of Wroclaw meeting.
The Treasury bureau chief is expected to this model of mortgage securities lending tools regularly assets (TALF), the us financial authorities asset backed securities market, to start.
According to the TALF program, the library services department for twenty yuan a one hundred million yuan credit guarantee, the federal reserve bank of New York at the time Turner, cover the President, allowing it to provide up to $20 billion. In return, the federal reserve bank of New York, the asset-backed securities as collateral a haircut.
TALF project has been included in the restart freeze the market of the car, students and small businesses loans and leasing support securities. Through the paper, was there any other buyers, the federal reserve as a market maker. The program without any reports of damage.
Although it is still not clear if the same mechanism may be used to make full use of Europe's relief fund, an analyst said the EFSF, money might be used to ensure that the euro zone of the European central bank debt sovereignty potential loss of part of the purchase, provide more than buy influence, if it's just bought with money hand in the secondary market bonds.
"It is possible to use the EFSF, in order to enlarge its overall ability, to support the sovereign bonds, for example, through to the first lose some guarantee," kapoor said, SONY, managing director of the think tank redefined.
One difficulty is that using a fund is covered by the eurozone member countries ensure that can increase the debt of one size fits all, AAA grade credit rating of the countries, such as France pressure.
The other pair euro Numbers of the bonds
Use EFSF will be a radical crisis, financial markets to the eurozone bonds issued jointly the possibility of the new method, infatuated with time even if the act is strongly opposed to by the German and could not happen soon.
German chancellor Angela merkel has once again turned down the bonds, as a day (Thursday) crisis solution, he says, "" is not going to solve the problem collectivization debt.
"In order to achieve the common interest rates, you need a similar level of competitiveness, similar budget, you didn't get them collectivization debt," she said.
The European Union top economic officials also said he expected the international lenders can suggest shipment of the Greek next important release a month over, against a threat of imminent default.
Although this may keep Greek floating, until it from the second relief plan, the euro area, says the finance minister to 2012 in the country will remain in a recession, for the fourth consecutive year in, contraction, is the only possible fuel popular anger tightening drive.
Add in Greece, Germany is the progress of Athens, said a more cautious some eu/imf aid under the plan implementation, but must obtain more reform progress to ensure that future 8 million euros in emergency loans to release.
"If has not implemented, we don't pay, she warned."
Angela merkel and French President nicolas sarkozy, with Greek prime minister in PaPanDeLiOu in Wednesday's conference call, expressed their Greece in the euro zone and continue to keep providing financial assistance, adhere to the strict austerity measures to meet its goal of financial support.
The European Union is responsible for economic and monetary affairs commissioner oliver, he is now the European Union is expected to Richard wren said/European central bank/international monetary fund "three carriages" inspectors review completed by the end of the month Greek financial goals.




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