European Financial Stability Fund at the highest level

Τhree major American rating agencies: Standard & Poor's, Moody's and Fitch, have confirmed the highest rating of the European Financial Stability Fund (EFSF) at the level AAA. This is stated in the related statement of agencies, which was published last Saturday.

By accepting this decision, the agency took into account the fact that on 18 October 2011 an agreement to increase the volume of EFSF to 440 billion euros under the guarantees worth 780 billion euros came into force, and only on 27 October 2011 during an emergency summit in Brussels the euro zone have agreed de-facto to increase EFSF to 1 trillion euros. To achieve this goal the government bonds of countries experiencing serious financial difficulties shall be insured.

Meanwhile, the head of the European Financial Stability Fund, Mr Klaus Regling during his visit to China did not rule out the possibility of issuing bonds of the European Stabilization Fund in the Chinese Yuan. During his speech at the one of Beijing University, Mr Regling said that EFSF has the right to issue bonds in any currency. However, he pointed out that the condition of the bond issue in Yuan is the consent of the Chinese government.
Deputy Minister of Finance of China, Mr Zhu Guanguao said that his government wants more "technical" information before making any investment decisions. Mr Regling stressed that China is a "good" and "loyal" purchaser of EFSF bonds and has rights to set up any conditions for the purchase of securities.

By Irina Lelina for Areti Charidemou & Associates LLC

Areti Charidemou & Associates LLC Law Firm