EU exec proposes broader fund scheme for euro zone

BRUSSELS, May 9 (BestGrowthStock) – The European Commission will ask
EU finance ministers on Sunday to extend an aid mechanism for
non-euro zone countries to nations in the single-currency bloc
to safeguard euro zone financial stability, EU sources said.

The Commission will also ask the extraordinary meeting of
ministers to raise the existing amount available under the
mechanism, called the balance-of-payments facility, by 60
billion euros ($80.5 billion).

The maximum available now is 50 billion euros.

EU sources said the 60 billion top-up would be used as base
capital, or collateral, for borrowing on the markets, which
would allow the Commission to raise up to 10 times that amount.

The 60 billion top-up would be guaranteed by all 27 members
of the European Union and the loans, if paid out to an EU
member, would carry conditions set by the International Monetary
Fund, one EU source said.

As an additional measure for euro zone countries only, the
Commission will propose a separate mechanism of
intergovernmental loans, the source said.
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(Reporting by Jan Strupczewski, additional reporting by Julien
Toyer, editing by Dale Hudson)

EU exec proposes broader fund scheme for euro zone