Euro Area Seeks Bigger IMF War Chest on Spanish Concerns
By Patrick Donahue and Simon Kennedy - Apr 16, 2012 9:27 AM ET
European officials travel to Washington this week seeking a bigger global war chest to combat the debt crisis as Spain’s government battles to quell renewed market turmoil over its finances.
Three weeks after European leaders unveiled emergency euro- area funding exceeding the symbolic $1 trillion mark, concerns about Spain’s position have ratcheted the nation’s borrowing costs to the highest levels this year. Crisis-fighting resources will dominate talks at the International Monetary Fund’s spring meeting in Washington from April 20-22.
While the U.S. insists that Europe can overcome the crisis using its own financial firepower, euro-area officials say they’ve done enough to trigger additional global assistance. The urgency was underscored last week as Spanish and Italian yields jumped, challenging assumptions among the region’s leaders that the worst of the fallout was behind them.
More: http://www.bloomberg.com/news/2012-04-15/euro-area-to-seek-bigger-imf-war-chest-as-spain-concerns-mount.html
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