Mexico’s Central Bank Chief Urges EFSF and ESM Merger, FTD Says

Agustin Carstens, the governor of Mexico’s central bank, urged Europe to combine the interim European Financial Stability Facility with the European Stability Mechanism, which is intended to be permanent, the Financial Times Deutschland reported, citing an interview.

Amalgamation would increase money available for bailouts to 750 billion euros ($995 billion), from 500 billion euros, though it’s unclear whether that would be adequate, the newspaper cited Carstens as saying.

Euro member-states’ decision to force losses on private sovereign bondholders last year was a mistake, leading to contagion elsewhere in Europe, Carstens added, according to the FTD.

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