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EU doubles crisis fund to euro50 billion

EU doubles crisis fund to euro50 billion

The European Union on Tuesday doubled a bailout fund for member states in trouble to euro50 billion.
Hungary and Latvia have already received euro9.6 billion from the fund, which raises money by selling bonds.
Romania is seeking euro5 billion from the EU as part of a euro20 billion joint rescue package from the International Monetary Fund and the European Bank for Reconstruction and Development.
EU nations are expected to approve the Romania bailout this month.
The EU fund can bail out the 11 EU nations that don't use the euro _ most of them eastern European countries. EU governments backed the increased limit on Tuesday, the final approval after the European Parliament supported it last month.
Germany initially opposed raising the limit from euro25 billion, only months after hiking it from euro12 billion. But the new limit aims to reassure eastern European nations that help is available from the European Union as a recession deepens.
The economic crisis has put the squeeze on many countries' finances, sending yearly budget deficits and overall public debt soaring as tax revenue plunges and social welfare payments climb sharply to help out the rising number of jobless.


Updated : 2021-05-10 09:17 GMT+08:00