The 'AA-' rating on the bonds reflects the gross pledge of the designated revenue sources prior to excess revenues being made available to the state's bond security and
redemption fund (BSRF).
They settled for a noncommittal statement from the Commission, which paved the way for an expert group to be set up to analyse "possible merits, risks, requirements and obstacles" of a European
Redemption Fund - to part-mutualise government debt - and short-term eurobills.
The bonds are payable from the bond security and
redemption fund, on parity with outstanding general obligations, and have a first lien on the fund, which receives all money deposited in the state treasury not otherwise dedicated.
A debt
redemption fund or some form of partial mutualisation of debt in the eurozone would have lowered the interest burden on Italian debt in a more substantial way.
To bridge the gap, the Commission, in a noncommittal statement, agreed to set up an expert group to analyse the ins and outs of a European
Redemption Fund - to part-mutualise government debt - and short-term eurobills (see box).
To break the deadlock, the Commission informally agreed to set up an expert group to analyse the legal feasibility of a European
Redemption Fund - to part-mutualise government debt - and short-term eurobills.
aTo break the deadlock and get the Liberals on board, it is looking more and more likely that aastudy group of experts to analyse the legal feasibility of a European
Redemption Fund - to part-mutualise government debt - and short-term eurobills will be set up.
The European Parliament is hammering on about the need to set up a temporary
redemption fund to reduce the member states' debt pile.
SURPLUS REVENUES SUPPORT DEBT: The indenture creates a closed flow of funds; surplus tax increment revenues from years prior are deposited into the
redemption fund supporting the continued servicing of annual debt obligations.
Austrian Chancellor Werner Faymann has put his weight behind the setting up of a
redemption fund at European level to reduce government debt levels.
Payable from revenues pledged from the general fund to the operating note
redemption fund (i.
These comments were no doubt aimed at the leaders of the S&D, ALDE and Greens-EFA groups in the European Parliament, which request commitments towards the setting up of a
redemption fund that would part-mutualise government debt and the issuance of short-term eurobills.
