BERLIN (MNI) – The German government cabinet has approved the
country’s share in the financing of the EU aid plan for fiscally
troubled member states, German N-TV television reported Tuesday.
Germany’s share will amount to up to E123 billion in loan
guarantees plus an additional up to 20% in case not all Eurozone states
contribute.
EU finance ministers agreed on Monday on a special fund to raise up
to E440 billion over three years to aid fiscally troubled member states.
Eurozone countries are to guarantee the loans and the amount each
country has to guarantee will be calculated based on its share in the
capital of the ECB.
German government spokesman Ulrich Wilhelm acknowledged on Monday
that “there exists the possibility that not every state will be able to
participate in these bilateral guarantees.” Thus, the share of loans
Germany will have to guarantee might rise above the basic quota, he
said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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