Source: ForexYard
After much deliberation the IMF has indicated that it may indeed intervene in bond markets as it anticipates the Greek bailout package to be modified.
This move has the support of a number of countries currently facing debt crises such as Spain and Italy, which are encountering their own set of problems stemming from the financial downturn. While countries such as these don’t face the same level of insolvency as Greece, for example, they do suffer from a lack of investor confidence. Therefore, a move on the part of the IMF to boost bonds could help reinvigorate some euro zone economies.
Ultimately, this will shore up additional economies in the EU which dovetails nicely with what EU finance ministers set forward as their own plan just this week.
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