European Leaders Face Hurdles Over IMF Loan |
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December 19, 2011
European Union finance ministers were holding emergency talks Monday in a bid to finalize a multibillion-euro loan to the International Monetary Fund and other steps to build a credible firewall around Italy and Spain, but continued political resistance means commitments are likely to fall short of expectations.
A target for a total contribution of €200 billion ($260 billion) in the form of additional bilateral loans to the IMF by the European Union aren't likely to be reached, IMF and euro-zone officials said Monday, because the euro zone has to overcome objections to the deal from the U.K. as well as Germany's Bundesbank. Poorer eastern European nations, such as the Czech Republic and Poland, have also expressed concerns that the deal is too expensive for them.
The teleconference of the 17 euro-zone finance ministers plus their 10 EU counterparts that don't use the euro, which started around 1430 GMT Monday, will focus on the details of the bilateral loans pledged to the IMF and the finalization of the permanent rescue fund treaty, the European Stability Mechanism, an EU official said.
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