Germany calls for 500-billion-euro crisis fund: diplomat

9th May 2010, Comments 0 comments

Germany on Sunday proposed the setting up of an unprecedented 500-billion-euro (645-billion-dollar) crisis fund, with IMF involvement, an EU diplomatic source said.

"Germany put a proposal for a total of 500 billion euros (645 billion dollars) on the table," the source said, which would be made available to any cash-strapped eurozone nation.

The total would include 60 billion euros of loan funds from the European Commission coffers -- a sum which has been discussed in recent days -- as well as 440 billion euros which would come, if necessary, from members of the 16-nation eurozone and the International Monetary Fund.

The package would include "bilateral loans, loan guarantees and IMF credit lines," according to the diplomatic source.

If the plan were to be agreed, as EU finance ministers held late-night talks in Brussels, the facility would be unprecedented.

© 2010 AFP

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