Europe to issue €5bn bail-out bond

Article reports that the European Union would launch a multibillion-euro bond in the second half of May 2011 to raise money for the rescues of Portugal and Ireland in an important test of investor sentiment after rows over the Greek debt crisis.

Strategists hope a successful auction will ease tensions in the eurozone after heated arguments between European Central Bank technocrats and EU politicians over a potential restructuring of Greek debt.

European Commission: Memo/11/336: €4.75 billion bond issued for EU´s assistance packages to Ireland and Portugal http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/336&format=HTML&aged=0&language=EN&guiLanguage=en

ESO: Background information: Merkel rejects Greek debt restructuring / EU looks at Greek debt options http://www.europeansources.info/record/merkel-rejects-greek-debt-restructuring-eu-looks-at-greek-debt-options/

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