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ChatGPT | EU looks at using its own budget as guarantee for huge loan to Ukraine, 4 June collateral reparations cock up
The European Commission is floating the idea of using future interest generated [sic]  by the investment of Russian assets frozen in Europe to pay back a loan [FROM WHOM?] that would, crucially, use the might of the bloc's €1.2 trillion seven-year budget as collateral. This is similar to a joint proposal [nope] pushed by U.S. Treasury Secretary Janet Yellen, but would see the EU acting alone.
wut
The original plan, which finance ministers of the G7 gave a cautious welcome to at a meeting last month, would see the U.S., or G7 countries jointly, securing the loan for Kyiv, while using the profits [!] of the Russian assets mainly held in Europe to pay back the interest [?!] on it.
[...]
The U.S. signaled the size of the loan [TO EU?] should be €50 billion, but the amount hasn't been agreed yet. Washington's idea would be for the frozen assets to be used to pay back [humanitarian OR weapons assistance?] the remaining [?] share of the loan [TO UKRAINE?] after the end of the war. While Washington initially suggested the U.S. would issue the loan [nope] to Ukraine with Europeans guaranteeing the funding RUSSIA reparations payment to UKRAINE, EU officials privately dismissed the idea.
USD 61B supplement PLUS "G7+ contributions"
They noted that the U.S. administration is keen to transfer risks to EU countries because < wipes tears > President Joe Biden does not want to involve Congress in ratifying the agreement appropriating moar Yermak "non-repaybable" Rassmussen "financial assistance", fearing that opposition from < wipes tears > Republican lawmakers will drag out the process past November's presidential election.
[...]
reuters | ECB cuts rates, keeps next move under wraps, 8 June
The European Central Bank cut interest rates for the first time in five years on Thursday but kept [Green MIC] investors in the dark about its next move given increasing uncertainty over inflation after a sharp slowdown in the past year. The ECB lowered its record-high deposit rate by 25 basis points to 3.75%, joining the central banks of Canada, Sweden, and Switzerland in starting to unwind some of the steepest rate hikes used to tame a post-pandemic inflation surge. Some economists say the biggest risk to the rate cut schedule is actually the U.S. Federal Reserve, not wages and inflation. The Fed has clearly signalled a delay in policy easing and a further delay in U.S. rate cuts is likely to make the ECB more cautious too, as a widening interest rate differential would weaken the euro and raise imported inflation.
ecb.europa.eu | Why we adjusted interest rates, 8 June
by Cat on Sun Jun 9th, 2024 at 04:34:33 PM EST
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