It also had to provide for a battery of government programs and facilities to backstop the banks' ability to fund and refund their liabilities while all of this is going on.
FRANKFURT — The International Monetary Fund granted Poland a $20.5 billion credit line on Tuesday, using a facility intended to backstop countries with sound economic policies that have been caught short by the global financial crisis.
Technical backstopping support was provided by the Swiss Tropical and Public Health Institute (Swiss TPH), Switzerland.
Goldman, for example, secured a backstop facility of at least $1 billion from Sumitomo Mitsui when it bought a stake in the Japanese bank in 2003.
Officials attending the meeting are expected to agree to create a permanent backstop facility for the euro after 2013, when the current mechanism expires, without requiring authorizing votes in member countries.
A second, aimed at the Argentina problem, is to set up a devaluation backstop facility that will pay out in the event of a sudden collapse in the exchange rate.
The funding needs of Italy, Ireland, Greece, Portugal, Spain and Belgium just to 2014 could be around four or five times as much as the current €450m backstop facility.
In some cases, as in our programs to backstop money market mutual funds, the purpose of the facility is to serve, once again in classic central bank fashion, as liquidity provider of last resort.
And last week he unveiled a plan to backstop consumer debt.
Banks are backstopped and, at least in theory, carefully regulated.
