European bank increases sovereign debt risk

More details are emerging as to how the European Central Bank (ECB) plans to use its 750bn Euro bailout package, announced March 2010, to rescue stricken states like Greece avoid sovereign default.

According to the Financial Times, the ECB will use ‘special purpose vehicles’ to issue Eurozone bonds using almost 60% of the 750bn Euros.

Funds raised will then be used to support bankrupt countries who would otherwise find it impossible or extremely costly to raise finance on the open market. Read more>>>