Dec. 9 (Bloomberg) -- The U.S. supports other nations making bilateral loans to the International Monetary Fund for Europe even though it won’t contribute, an Obama administration official said.
The IMF can’t substitute for a European show of force and commitment to the 17-nation euro area, said the official, who declined to be identified as a condition for holding a briefing with reporters today. Europe is still working toward building a so-called firewall, the official said.
European leaders holding all-night talks in Brussels added 200 billion euros ($267 billion) to their crisis-fighting fund and tightened anti-deficit rules. They sped up the start of a 500 billion-euro rescue fund to next year and diluted a demand that bondholders shoulder losses in rescues.
While European Central Bank President Mario Draghi hailed the accord, investors urged him to expand his crisis-fighting arsenal to ensure debt-addled nations can pay their bills. Italian and Spanish bonds fell even as the ECB was said to be buying them in the market.
--Editors: Kevin Costelloe, James Tyson
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