More details on the proposed overhaul of the EFSF: The rate charged to bailed out countries...

|By:, SA News Editor

More details on the proposed overhaul of the EFSF: The rate charged to bailed out countries could be lowered to 3.5%, and the maturity lengthened to at least 15 years from 7.5 years. The fund will also be able to recapitalize banks in countries not being bailed out (hint: Italy and Spain). The key to making this all work is the ECB reversing policy to allow "selective default."