More on the latest EU bazooka: As floated earlier, the EFSF will offer first-loss guarantees to...

|By:, SA News Editor

More on the latest EU bazooka: As floated earlier, the EFSF will offer first-loss guarantees to holders of sovereign debt, creating an effective fivefold increase in the fund's firepower. Second, EU banks will be recapitalised to a 9% ratio. German and French lenders can do this on their own, while others will receive assistance as necessary.