Sweden ready to provide additional IMF lending – if others do same
Anders Borg, Sweden’s minister for Finance, said he backed the figure of SEK100bn (€11bn) that the country’s central bank governor Stefan Ingves announced last week as the amount the country would be willing to pump into the IMF to assist stricken eurozone nations – but only if other countries also agree to provide more funding.
Borg made the comments late yesterday even as markets digested the news that the UK had decided not to back the plan to pump more money into the IMF in order to create stability around the eurozone debt crisis.
Europe’s finance ministers agreed to a €150bn boost to the IMF’s coffers, although this was short of a €200bn figure previously targeted by EU leaders at their meeting on 8-9 December.
The UK’s decision not to join other EU member states, including countries that do not use the euro such as Sweden, Denmark, Poland and the Czeck Republic, puts pressure back on the currency block to do deals with the likes of China and Russia – the latter has already promised more support.
In related news, today’s German industrial output figures seem to have provided encouragment to the market in Spanish government bonds, where yields have plummeted at the latest auction.
Six-month debt sold for a price of 2.43% compared to 5.22% at the last auction in November, a drop of 279 basis points notes Denmark’s Børsen.
Three-month debt sold for 1.73% against 5.11% during the last auction.