Paper: Europe needs $1.3 trillion bailout fund
PARIS (AP) - The economic organization that represents developed countries says Europe probably needs a $1.3 trillion bailout fund if it is to stop the spread of its debt crisis.
A paper released Thursday by the Organization for Economic Cooperation and Development lays out a list of steps Europe has to take "if a fracturing of the euro is to be avoided."
It includes making sure banks have enough money to weather the storm; forcing the private holders of Greek debt to take at least a 50 percent loss on their bonds; and increasing the size of the bailout fund, which will have €500 billion when it comes into effect.
The paper also detailed ways the fund could raise money, saying that private investors would be unlikely to put up the cash.
A paper released Thursday by the Organization for Economic Cooperation and Development lays out a list of steps Europe has to take "if a fracturing of the euro is to be avoided."
It includes making sure banks have enough money to weather the storm; forcing the private holders of Greek debt to take at least a 50 percent loss on their bonds; and increasing the size of the bailout fund, which will have €500 billion when it comes into effect.
The paper also detailed ways the fund could raise money, saying that private investors would be unlikely to put up the cash.
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