EFSF denies report that it bought its own bonds

BRUSSELS Sun Nov 13, 2011 10:03am EST

BRUSSELS (Reuters) - The euro zone's bailout fund said on Sunday that it did not buy its own bonds last week, denying a British newspaper report that it spent more than 100 million euros ($137 million) to cover a shortfall of demand.

Britain's Sunday Telegraph said that the EFSF had to step in after banks leading the deal were only able to find about 2.7 billion euros of outside demand. The 10-year bond sale raised 3 billion euros last Monday.

"The EFSF did not buy its own bonds and the book was 3 billion euros," an EFSF spokesman said, referring to the 3 billion euros raised in last Monday's 10-year bond issue.

Top officials of the EFSF have said the modest 3 billion euro issue was a reflection of the unstable market conditions.

EFSF head Klaus Regling told the Financial Times on Friday that market upheaval had made it difficult to leverage the fund to the planned 1 trillion euros.

(Reporting By Philip Blenkinsop; Editing by David Cowell)

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Comments (2)
callmeacynic wrote:
this is an absurd, impossible structure which will undoubtedly crash and burn – reminds one of the scene in The Wizard Of Oz where Toto had pulled back the curtain – Oz still furiously pulling levers and blustering -

Nov 13, 2011 1:05pm EST  --  Report as abuse
jpstrikesback wrote:
Prove it.

Nov 13, 2011 7:27pm EST  --  Report as abuse
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