ECB Cuts Rates to 0.75%, Deposit Rates to Zero
The European Central Bank (ECB) cut its benchmark rate from an already-low 1% to a new record of 0.75%, in the hope that it would kickstart an economy on the skids.
G-20 Boosts IMF Firewall, Pressures Germany
At the summit meeting of G-20 leaders in Los Cabos, Mexico, the focus was on strengthening the firewall of the IMF and pushing Germany to relent on pooled debt and increasing deficit spending.
Europe’s Crisis Focus Shifts From Greece to Spain
Concerns eased a bit over the possibility of a Greek exit from the euro zone as Saturday polls showed rising support for pro-bailout parties in that country. But attention turned to Spain as earlier estimates of funding needed for a bailout of its largest bank looked to be seriously undervalued.
Bundesbank Warns Greece as E.U. Leaders Meet
Germany’s Bundesbank warned Greece on Wednesday that if it failed to carry through with reforms it had previously agreed to, it would jeopardize any further aid funds.
France, Germany Talk Growth as Greece Teeters
The newly elected French president, Francois Hollande, met with Chancellor Angela Merkel of Germany to discuss the possibility of growth measures as they sought a way out of the Greek debt debacle.
Elections Leave Greeks Lacking Coalition, Others Rethinking Austerity
Successful votes against austerity from Greece to France have pushed officials to consider other ways to cope with the debt crisis in the euro zone.
Emerging Economies Demand Greater Sway in IMF
The dominant emerging economies have pledged billions to the IMF. However, those countries, and others, are growing restive at the long dominance of Europe and the U.S.
IMF’s Lagarde: ‘There Are Clouds on the Horizon’
IMF managing director said that she expects more contributions on top of the $320 billion raised
Japan Pledges $60B to IMF
The pledge boosts overall commitments to about $310 billion, with about $200 billion coming from euro zone countries and another $50 billion from other E.U. countries.
Nigeria Calls for Non-U.S. World Bank Head
Nigerian Finance Minister Ngozi Okonjo-Iweala praised the current World Bank leader, but said it was time to give someone from the developing world a chance.