Eurozone agrees to increase effectiveness of rescue fund

12th March 2011, Comments 0 comments

Eurozone leaders agreed Saturday to increase the effectiveness of the debt rescue facility set up last year after Greece was bailed out to save it from default, French President Nicolas Sarkozy said.

"We have agreed to step up the effective loan capability of the ... EFSF (European Financial Stability Facility) from 240 billion euros ... to 500 billion euros," Sarkozy said.

The 3-year EFSF totals 440 billion euros (610 billion dollars) but it can effectively only make available some 250 billion euros. It will be replaced in 2013 by a permanent European Stability Mechanism.

© 2011 AFP

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