EFSF ready to offer short term bills to raise money quickly

Discussion in 'Wall St. News' started by ASusilovic, Nov 10, 2011.

  1. Christophe Frankel, the EFSF’s chief financial officer, said the fund was prepared to offer short term bills to raise money quickly and said such an offering was likely before the end of the year. In the past, the EFSF has only been able to raise funds for bail-outs through five and 10-year bond offerings, a long and complicated process that makes it difficult to raise cash in an emergency.

    But Mr Frankel said the legal paperwork to issue bills was already in place and the programme could be triggered immediately, if needed.

    “The beauty of the bill programme is you can start with an amount which is a few billion and then raise it very rapidly,” Mr Frankel said. “Once it exists, we know we can raise huge amounts in a very short time.”