Wall Street Journal
November 11, 2011
The euro-zone's bailout fund is unlikely to quickly amass money for a proposed €1 trillion ($1.36 trillion) firewall against the debt crisis, since investors being solicited want more specifics about how the instrument would be used before committing cash, Klaus Regling, the fund's chief executive, said Thursday.
Mr. Regling has been canvassing investors for in a proposed "co-investment fund," which would see private money deployed alongside money from his European Financial Stability Facility to help troubled euro-zone countries. But Mr. Regling said there were not likely to be large, up-front commitments, and that many potential investors will want to know which country or countries need help before putting cash into the new vehicle.
"Don't expect that there will be a few hundred billion sitting somewhere in December waiting to be used for our new instruments," Mr. Regling said in an interview with a small group of reporters. He added that it wasn't necessary to have such a sum in place and that the fund should be able eventually to raise what it needs.
The new co-investment vehicle is one of two options on the table for increasing the capacity of the bailout fund.
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