Bloomberg News

EFSF Gets Ministers’ Approval for Expansion of Its Capacity

November 29, 2011

Nov. 29 (Bloomberg) -- Euro-area finance ministers agreed today to extend the capacity of the European Financial Stability Fund by “introducing sovereign bond practical risk participation and a co-investment approach,” the EFSF said in an e-mailed statement.

The EFSF has a current lending capacity of 440 billion euros. Without knowing the exact amounts needed, EFSF should be able to leverage its own resources of up toe 250 billion euros, the statement said.

The options are “designed to enlarge the capacity of the EFSF so that the new instruments available to the EFSF can be used efficiently,” the statement cites Klaus Regling, EFSF chief executive officer, as saying.

Under the partial-risk protection, EFSF would provide a partial-protection certificate to a newly issued bond of a member state, the statement said.

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

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