Friday 15 December 2017

Debt Crisis: Euro gains on $1 trillion IMF boost reports

IMF chief Christine Lagarde. Photo: Getty Images
IMF chief Christine Lagarde. Photo: Getty Images reporters

THE euro got a boost today on reports that the International Monetary Fund will pump $1 trillion into the system to help resolve the debt crisis.

But there are still worries that new talks to resolve the Greek crisis due for today could limit gains.

Greece desperately needs to resolve its issues with creditor banks with €14.5bn in bond redemptions due in March.

The euro traded up to $1.2845 on speculation that the IMF, headed up by Christine Lagarde, will intervene – on Friday it hit lows not seen since last August.

All eyes will be on French and Spanish bond sales later this week while analysts said investors are on the lookout for positive news.

Last week Standard & Poor’s downgraded the AAA rating of France and also cut its outlook for a number of other European countries but other agencies did not follow suit.

It also downgraded the rating of the European Financial Stability Facility bailout fund.

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