EU agrees to EFSF leverage expansion rules (by Wallace Witkowski)
SAN FRANCISCO (MarketWatch) -- European finance ministers agreed late Tuesday on terms for two options to expand the capacity of the region's bailout fund, according to a statement released by officials following a meeting in Brussels. Under the first option, bond holders would get partial risk protection of 20% to 30% backed by the European Financial Stability Facility. Under the second option, one or more so-called co-investment funds would be created allowing for the combination of public and private funding to buy bonds on the primary and secondary markets. Both options are expected to be ready to use by early 2012. Also, president of the Eurogroup finance ministers Jean-Claude Juncker said ministers agreed to a sixth disbursement of Greek bailout funds and that they will be available by mid-December.