European officials are nearing a consensus to enable the euro rescue fund to buy distressed governments’ debt in private placements, while divisions fester over possible acquisitions of outstanding bonds, said three people familiar with the discussions.
Agreement on allowing the 440 billion-euro ($605 billion) European Financial Stability Facility to purchase bonds from the issuers may mark a step toward a broader overhaul of the rescue fund. Moves under discussion include secondary market purchases, using loans for governments to retire traded debt at a discount, and better aid terms, the people said.
