Exchange rates: EU saves euro

Exchange rate of euro will change significantly

In brief: Europeans are trying to save euro, but it's very and very hard.

Euro can be saved. EU finance ministers are close to reaching an agreement on the establishment of a stabilization fund of the EU. This is a diplomatic source said on the sidelines of an emergency meeting of finance ministers of the EU. “There is a fundamental understanding, but it remains to agree on a number of details”, – said the source. He did not say whether there had been to obtain the consent of Great Britain to participate in the European Stabilization Fund.

As a basis for a pan-European mechanism for the stabilization fund will be taken of financial assistance outside the euro zone states, created after the first blow of the financial crisis in 2008. Last year, this financial instrument amounted to 50 billion euros. It has been used to support the financial systems in Latvia, Romania and Hungary. The mechanism is based on a system of state guarantees, which EU governments have provided the European Commission. Under these guarantees, the European Commission, which has the highest credit rating, attracting commercial loans at low interest rates in financial markets, which are then sent to the States, who are in a quandary. The advantage of this system, that find themselves in preddefoltnom state of the country can get liquidity at interest rates two to three times lower than those under which they can give loans to financial markets.

Anrey Torbinski
2010-05-09 20:53, Currency news.

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