EURO SURGES: Sarkozy Announces New European Monetary Fund, Greece Gets Bailout

nicolas sarkozy france eG8

Photo: Pascal-Emmanuel Gobry, Business Insider

Just headlines via Bloomberg…Nicolas Sarkozy is talking about the establishment of something called the European Monetary Fund.

The fund would help to recapitalize banks, and would also be able to intervene on secondary bond markets.

He says the Aim is for the Greeks to pay an average 4.5% interest rate for the next 10 years, and that the rate reduction would be the equivalent to 12 GDP points. Also, the Greek debt load will end up lightened.

An interesting thing: Banks will be forced to contribute 135 billion Euros… over 30 years!

He also has made comments about a new European ratings agency.

The euro, which has already had a ridiculous day, has just taken another huge leg up.

In terms of Greek aid, Greece is getting a 109 billion EUR with about 37 billion EUR coming from the private sector.

Check it out:


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