Bloomberg News

Lagarde Says EU Officials Must Spell Out EFSF Leverage Plans

October 26, 2011

Oct. 27 (Bloomberg) -- International Monetary Fund Managing Director Christine Lagarde said European officials need to outline how they will leverage their rescue fund.

“In the period ahead, it will be important to detail further the modalities of how this enhanced EFSF will operate and deliver the scale of support envisaged,” she said in an emailed statement after a summit of euro region leaders.

“The decision to leverage the capacity of the European Financial Stability Facility (EFSF), including through the use of new Special Purpose Vehicles (SPVs), can strengthen Europe’s defenses against contagion and help ensure the proper functioning of the sovereign debt market,” she said.

Lagarde also said that she will recommend that the IMF’s Executive Board disburses “the next tranche of our loans under the current program. The continued commmitment of the Greek authorities to implement agreed economic reforms remains, of course, paramount.”

To contact the reporter on this story: John Fraher in London at

To contact the editor responsible for this story: John Fraher at

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