[xtypo_dropcap]E[/xtypo_dropcap]urope’s emergency rescue fund, the European Financial Stability Facility (EFSF), successfully issued its first bonds on Tuesday, with investors showing a huge interest.
The release is part of the financial support package for Ireland. The yield on the five-year bonds is 2.9 percent and attracted almost nine times more investors than the 5 billion euros (US$6.8 billion) put on offer.
Interest came in from around the world from all kind of institutions. The Japanese government bought over 20 percent of the bonds, according to a press release by EFSF.
The 2.9 percent return on the bonds is more than 1.5 times the return on the reliable German bonds and was perceived very attractive. EFSF was created by eurozone area member states (EAMS) in May 2010, to help out countries having financial problems, as Greece and Ireland experienced. EAMS guaranteed raising the funds for EFSF for providing loans up to 440 billion euros (US$600 billion).
EFSF is part of a 750 billion euro ($1.02 trillion) safety net set up in cooperation with the International Monetary Fund and the European Commission.
The release is part of the financial support package for Ireland. The yield on the five-year bonds is 2.9 percent and attracted almost nine times more investors than the 5 billion euros (US$6.8 billion) put on offer.
Interest came in from around the world from all kind of institutions. The Japanese government bought over 20 percent of the bonds, according to a press release by EFSF.
The 2.9 percent return on the bonds is more than 1.5 times the return on the reliable German bonds and was perceived very attractive. EFSF was created by eurozone area member states (EAMS) in May 2010, to help out countries having financial problems, as Greece and Ireland experienced. EAMS guaranteed raising the funds for EFSF for providing loans up to 440 billion euros (US$600 billion).
EFSF is part of a 750 billion euro ($1.02 trillion) safety net set up in cooperation with the International Monetary Fund and the European Commission.
