The eurozone nations are coming to a realization that getting significant financing from external sources even within the EU will prove to be difficult. In the end they need to step up to create whatever support facilities necessary to keep the the euro intact. And of course it will fall on the wealthier nations to provide the bigger share of the support.
Reuters: "Ministers confirmed today that ... euro area member states will provide 150 billion euros of additional resources through bilateral loans to the fund's general resources account," EU finance ministers said in a statement.Attached document from the EU finance ministers press release that shows the breakdown of each member state's contribution provided via bilateral loans. Germany and France together make up nearly 50% of this contribution.
But this contribution is not nearly enough to calm the markets that were looking for 200 billion euros to the IMF. That target was not met to a large extent because the UK is staying out. As with the fiscal union proposal, the eurozone is going it alone. And so far there is no "bazooka".
But even with that, the IMF will likely start developing a strategy shortly to purchase eurozone bonds in the secondary or even the primary markets.
Eurozone Contribution to IMF
SoberLook.com
