Eurozone finance ministers will set up a €500 billion permanent bailout fund, Financial Times reports. The European Stability Mechanism will replace the existing temporary €440 billion eurozone bailout fund and €60 billion European Union facility, which can lend a combined €250 billion to maintain capital buffers to ensure their credit worthiness.
The new fund will come into effect from 2013 and will not have capital buffer restrictions. The bailout fund will be able to borrow from the eurozone countries, International Monetary Fund and non-euro European Union nations.
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