Euro Zone Toughens Terms for EFSF Secondary Market Bond Buys
Euro-area officials toughened the conditions for bond buying by the European Financial Stability Facility, making it possible to halt the purchases when countries miss economic and financial targets.
A new version of the EFSF guidelines foresees the possible “termination of the secondary market purchases” of the bonds of countries that deviate from targets, according to a document obtained by Bloomberg News.
An earlier draft didn’t spell out the “termination” option. Instead, it foresaw a full macroeconomic adjustment program and a monthly review of the continuation of the purchases.
The new draft, prepared by senior officials late yesterday, will be discussed by euro finance ministers in Brussels today.
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