Special Report: Global Financial Crisis
BRUSSELS, Nov. 6 (Xinhua) -- The European Commission
has approved a series of financial rescue plans of member nations since the
27-nation bloc's mid-October summit to weather the global financial crisis.
On Nov. 4, the European Union's executive body
approved a rescue plan of the Spanish government, which will spend 30 billion
euros (41 billion U.S. dollars) to buy highly-rated assets of banks.
Under the Spanish scheme, a government-sponsored fund
will purchase AAA rated covered bonds of banks through an auction. The fund can
also buy highly-rated covered bonds or asset-backed securities with a high AA
rating or above if the banks commit to re-purchase those assets at a pre-fixed
price at a later date.
On Nov. 5, the commission said it approved a package
of measures by the Danish government to liquidate Roskilde Bank, the eight
largest in the country falling prey to the financial crisis.
The Danish National Bank and the Danish association
of private banks (DPB) took over, through a newly created entity, all assets and
liabilities of Roskilde Bank, in August to wind up the bank's activities after a
previous rescue effort failed.
On the same day, the commission said it had adopted
the consolidated text of all accounting rules applicable in the European Union
(EU).
The consolidated version puts together all
International Financial Reporting Standards (IFRS) endorsed to date, including
the latest amendments made in October, which will enable stakeholders to refer
to only one single legal document.
On Nov. 4, EU finance ministers signaled their
support on Tuesday for a plan to double the bloc's crisis fund in emergency aid,
to 25 billion euros, to its members severely hit by the financial crisis.
On Oct. 31, the commission formally proposed to grant
financial assistance of to Hungary and raise ceiling of EU aid to member states.
Under the proposal, Hungary will benefit of a
medium-term loan amounting to a maximum of 6.5 billion euros (8.3 billion U.S.
dollars with a maximum average maturity of five years.
The EU support is granted in conjunction with a loan
from the International Monetary and the World Bank, with a total amount of 20
billion euros (26 billion U.S. dollars).
Separately, the commission proposed to increase the
ceiling of EU financial assistance for non-euro member states that experience
difficulties with balances of payments to 25 billion euros (32 billion U.S.
dollars).
On Oct. 31, the commission cleared a French financial
bailout plan, under which banks will be able to get loans from a central agency,
whose activities are guaranteed by the government, and they have to pay a
premium to a normal market price.
The maximum sum that can be guaranteed is around 265
billion euros (345 billion U.S. dollars), the commission said, describing it as
an appropriate, necessary and proportionate means of remedying a serious
disturbance in the French economy.
Also on Oct. 31, the commission approved a Dutch
financial rescue plan involving guarantee of 200 billion euros (261 billion U.S.
dollars) of bank loans.
On Oct. 30, the commission gave green light to a
Swedish bailout plan with 150 billion euros (197 billion U.S. dollars) available
to stabilize financial markets.
On the same day, the EU executive arm said it had
approved a Portuguese rescue package of 20 billion euros (26 billion
dollars)scheme on state aid to overcome the financial crisis.
On Oct. 28, the European
Commission approved a German rescue package which would use 500 billion euros
(623 billion U.S. dollars) to stabilize financial markets.
European Central Bank cuts key rate
BERLIN, Nov. 6 (Xinhua) -- The European Central Bank Thursday cut its key rate to 3.25 percent.
Meanwhile，the Bank of England announced on Thursday a 1.5 percent interest rate cut in reaction to current pressures from businesses. Full story
EU finance ministers agree to plan to
reform global financial system
BRUSSELS, Nov. 4 (Xinhua) -- Finance ministers from the
European Union (EU) countries agreed on Tuesday to a watered-down plan for
reform of the global finance system.
The monthly meeting of EU finance ministers aimed to forge
a joint European position on how to rebuild the international financial system
and avoid repeat of the current financial crisis at a summit of the world's 20
largest economies in Washington on Nov. 15. Full story
