Bail out.

This topic contains 1 reply, has 2 voices, and was last updated by Avatar of johnmoffat John Moffat 1 year, 7 months ago. This post has been viewed 43 times

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  • Avatar of Saline
    Saline
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    • Topics: 20
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    What is meant by EU keep granting bailouts to various countries ( such as SPAIN),
    If bail out means to pay off the debt of Spain so from where does the EU gets money to do this bail out?


    Avatar of johnmoffat
    John Moffat
    Keymaster
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    Bail out means that the European Central Bank and the IMF are lending money to Spain so that they can repay their existing borrowings when they fall due. They will still charge interest.
    The ECB borrows money from other european countries, the IMF borrows money from countries all over the world.

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