Economics
Europe Agrees on $260 Billion Credit Lines to Stem Fallout
- Deal paves the way for extending concessionary loans
- Internal politics complicate tapping region’s bailout fund
Pedestrian wearing protective face masks look out from Pincio terrace in Rome.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Euro-area finance ministers agreed to allow the region’s bailout fund to extend credit lines to each of the bloc’s governments on concessionary terms, paving the way for countries including Italy to draw cheap liquidity amid an unprecedented spending spree.
The deal struck at a video conference on Friday forms a key part of the bloc’s response to the crisis brought on by the coronavirus pandemic, that’s put the European Union on track for the steepest recession in its history. Italian bonds rallied, with yields on 10-year notes dropping 8 basis points to 1.84%.