The German Parilament Approved A Bill To Raise Fund Of EFSF
The German Parilament Approved A Bill To Raise Fund Of EFSF
2011-11-07 Observer
The German parilament approved a bill to raise fund of European Financial Stability Facility(EFSF). The European Financial Stability Facility (EFSF) was created by the euro area Member States to support Member States facing fiscal crisis and to prevent fiscal crisis of Greece and Italy from effecting on Europe. Currently, a few countries like Germany, France, Holland, Finland provide loans to countries in financial difficulties and they are planning to raise fund €440 billion to €780 billion. Raising fund can prevent Member States in fiscal crisis from being defaulted in the short term but raising fund even is vastly insufficient to overcome fiscal crisis. Raising fund of EFSF may have aftereffect on Korean economy. Morgan Stanley analysed, "The bank fund of Germany and France in Korea come to 47 billion and they may collect debt when they are in financial difficulties because of raising fund. It is possible to give fatal blow to Korea."