Major financials call for EFSF insurance plan

Fri Oct 21, 2011 8:46am EDT

LONDON, Oct 21 (IFR) - A group of 10 European financial institutions have sent a letter to the European Financial Stablity Fund to back a proposal for insurance of parts of eurozone sovereign bonds.

In a letter seen by IFR, dated October 21 and addressed to the EFSF chief executive Klaus Regling, the group said that they saw the proposal as an essential element for sovereigns gaining access to private funding at sustainable rates, and that it should be part of any comprehensive plan by European governments to address the crisis.

The letter was signed by Allianz, Axa, Banco Popular Espanol, Commerzbank, Deutsche Bank, Generali, Mediobanca, MunichRe, PIMCO, and Unicredit.

It also stated that the proposal is supported by numerous other European financial institutions that were not in a position to sign the open support letter by 12:30 GMT.

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