European Union and IMF $1 Trillion Rescue Package
On Monday May 10 2010, The European Union (EU) and the International Monetary Fund (IMF) agreed to a rescue package to prevent the sovereign debt crisis from spreading. The package agreed earlier on Monday, pledged 500 Billion Euros ($670 Billion USD) of loans and loan guarantees to any Eurozone country that needed funding. In addition, there was approximately 250 Billion Euros ($325 Billion USD) from the IMF.
This package is on the same scale as that of the $700 Billion USD, TARP (Troubled Asset Relief Program) in the United States during the last two years (2007-2009).
The European Central Bank also plans to buy the region’s government bonds, and a number of European central banks had mentioned they already started to do so. Measures are also being addressed by central banks to address funding strains. However, it was not made clear where the funds for the rescue package will actually come from.
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