Euro states may speed up capital payments into bailout fund

PanARMENIAN.Net - Two European Union officials say euro states are debating speeding up capital payments into their future rescue fund so it can reach its full €500 billion ($670 billion) capacity by 2014, AP reported.

The European Stability Mechanism has €80 billion in paid-in capital, which it can leverage similarly to a bank to lend out a maximum of €500 billion.

At the moment, the countries' payments into the fund will be spread out in five installments, the first two of which will come this year.

That means that when the ESM comes into force in July, it would only be capable of lending some €200 billion in bailout loans.

But two officials said the 17 euro countries are now discussing also making two payments next year, with the final one coming in 2014, instead of 2015. They were speaking on condition of anonymity to discuss confidential talks.