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.
To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net
To contact the editor responsible for this story: James G. Neuger at jneuger@bloomberg.net
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