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.