(For more on the sovereign-debt crisis, see EXT4.)
Nov. 30 (Bloomberg) -- Dutch Finance Minister Jan Kees de Jager said the euro area’s debt crisis requires global support through the International Monetary Fund because of its worldwide impact.
“It’s not only the euro zone which will be affected when this crisis escalates,” De Jager said in an interview today in Brussels after a meeting of euro-area finance ministers. “It’s very important that the IMF globally will increase its resources either by raising its capital or by bilateral loans so that it can lend more money to euro-zone countries in need.”
De Jager said increased IMF aid to Europe is needed in concert with the euro area’s rescue fund in order to tap sufficient resources to stem the debt crisis. A bigger role for the IMF should accompany European plans to expand the European Financial Stability Facility’s firepower, he said.
“If we open the IMF effort, that will be sufficient together with the leverage options in the EFSF,” De Jager said.
De Jager also said euro-area rescue efforts will be “sufficient” for Greece, provided that country meets all of the conditions laid out by European leaders in October. The euro region yesterday approved the sixth payout in Greece’s initial bailout package, while also moving closer to a second package as outlined last month.
Greek Finance Minister Evangelos Venizelos said his country intends to make good on its pledges.
“We respect absolutely the different parameters and we go ahead in order to implement and execute the decision” of European leaders, Venizelos said in a separate interview in Brussels.
--Editor: Jones Hayden
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