Euro rescue funds exceed 1.0 tn euros

Rescue funds to bail out ailing eurozone countries exceed 1.0 trillion euros -- including those already spent -- Klaus Regling, head of the European Financial Stability Facility, said Friday. "I never understand when market participants say authorities haven't put enough money up," Regling said at a conference in Rome, specifying that the 1.0 trillion included funds already committed in loans as well as unused funds. As well as money earmarked for bailed out Greece, Portugal and Ireland, Regling flagged up the European Central Bank's estimated 200 billion euros of bond purchases, 400 billion euros in EFSF unused funds, and the IMF pledge to stump up one-third of the total of rescue packages. "I don't share the view that only the European Central Bank can solve the crisis" because of its unlimited funding resources, he said, referring to pressure for the ECB to intervene on a large scale in the economic crisis. Whether there are enough funds available to rescue countries such as Italy and Spain should they need a bailout is a hotly debated issue, with some analysts predicting bankruptcy in Rome or Madrid would fell the eurozone. The EFSF has been criticized for lacking the necessary resources, noting that the 440 billion euros cannot be fully deployed as about half has to be retained to guarantee the loans it makes. Regling said the EFSF may invest up to 50 billion euros in fresh equity of euro-area banks, he said he would not haphazardly finance projects. "I will not try to get 100 billion euros on my balance sheet if I don't know for what reason," he said.