FOREX TradingCharts.com

Financial News: Eurogroup Broadly Supports Use Of Bailout Fund To

Eurogroup Broadly Supports Use Of Bailout Fund To Fight Crisis

03/25/2020 - 00:15:00 (RTTNews)

(RTTNews) - Eurozone finance ministers broadly supported the use of bailout fund, or the European Stability Mechanism, to help those member countries struggling hardly with the coronavirus outbreak.

After the Eurogroup video conference on Tuesday, President Mário Centeno, said leaders took stock of all the measures already taken and also of the initiatives that are being explored among institutions to tackle the economic crisis caused by the coronavirus outbreak.

There is broad support to consider a Pandemic crisis support safeguard based on an existing ESM precautionary instrument, he said.

The size of the available instrument could be in the range of 2 percent of members' GDP, as a benchmark, Centeno said.

"While there is broad support among members around these features, more work is needed on details." The decision will be taken at the meeting of the leaders on Thursday.

The precautionary credit line is the most suitable instrument to respond to the corona challenge, particularly the precautionary credit line called ECCL, or Enhanced Conditions Credit Line, ESM Managing Director Klaus Regling, said.

A precautionary credit line, the ECCL in particular, would be available for all member states of the euro area, but it is up to every member state to decide whether they want to apply for it or not, Regling added.

This could be adjusted possibly in view of the severity of the spreading of the coronavirus and its economic impact. If a credit line is drawn, the funds would be used to finance the country's immediate health care and economic responses to the crisis.

Responding to a question on the maximum size of the credit line, Regling said it could go up if there is a particularly serious case, but that is not decided yet. "There was today a broad consensus around this 2 percent number."

The reluctance to agree on corona bonds or other forms of clear burden sharing, at least for now, means that a euro debt crisis could return in the aftermath of the current crisis, no matter when this will be, Carsten Brzeski and Bert Colijn, ING economists said.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


China's Inflation Eases In March; PPI Falls For Second Month (02 hr(s), 50 min(s), 54 sec(s) ago)
(RTTNews) - China's consumer price inflation slowed more-than-expected to a five-month low in ...Full Story»

China Inflation Slows To 4.3% In March (35 min(s), 06 sec(s) ago)
(RTTNews) - Consumer prices in China were up just 4.3 percent on year in March, the National Burea ...Full Story»

Japan Overall Bank Lending Rises 2.0% In March (05 min(s), 06 sec(s) ago)
(RTTNews) - Overall bank lending in Japan was up 2.0 percent on year in March, the Bank of Japan s ...Full Story»

Japan Producer Prices Sink 0.9% In March (50 min(s), 06 sec(s) ago)
(RTTNews) - Producer prices in Japan were down 0.9 percent on month in March, the Bank of Japan sa ...Full Story»

China Inflation Data Due On Friday (50 min(s), 06 sec(s) ago)
(RTTNews) - China will on Friday release March figures for consumer and producer prices, highlight ...Full Story»

Powell Expects 'Robust' Economic Recovery When Coronavirus Is Contained (18 min(s), 06 sec(s) ago)
(RTTNews) - Despite the havoc being wreaked on the world by the coronavirus outbreak, Federal Rese ...Full Story»

NIESR Sees UK GDP Contraction Of 15-25% In Q2 On Covid-19 (16 min(s), 06 sec(s) ago)
(RTTNews) - The UK economy would be plunged into a severe recession in the second quarter if the l ...Full Story»

ECB Minutes: Members Saw Need For Bold, Decisive Action Against Covid-19 Shock (43 min(s), 06 sec(s) ago)
(RTTNews) - ECB policymakers agreed that there was need for decisive action to support the euro ar ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

China's Inflation Eases In March; PPI Falls For Second Month

04/10/2020 - 01:19 AM (RTTNews)
(RTTNews) - China's consumer price inflation slowed more-than-expected to a five-month low in ...Full Story>>

China Inflation Slows To 4.3% In March

04/09/2020 - 21:45 PM (RTTNews)
(RTTNews) - Consumer prices in China were up just 4.3 percent on year in March, the National Burea ...Full Story>>

Japan Overall Bank Lending Rises 2.0% In March

04/09/2020 - 20:15 PM (RTTNews)
(RTTNews) - Overall bank lending in Japan was up 2.0 percent on year in March, the Bank of Japan s ...Full Story>>

Japan Producer Prices Sink 0.9% In March

04/09/2020 - 20:00 PM (RTTNews)
(RTTNews) - Producer prices in Japan were down 0.9 percent on month in March, the Bank of Japan sa ...Full Story>>

China Inflation Data Due On Friday

04/09/2020 - 18:00 PM (RTTNews)
(RTTNews) - China will on Friday release March figures for consumer and producer prices, highlight ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.