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Banking fragility rooted in justice failures Evidence from Ukraine
Policy Contribution

The pitfalls of official first-loss bond insurance

27 October 2011

The pitfalls of official first-loss bond insurance

Eurozone leaders agreed this morning on the rough outline of a package of measures designed to end the crisis in the eurozone. This commentary argues that a central pillar of the package will not work. The so-called ‘first-loss insurance’ of eurozone sovereign debt relies on an incomplete analysis of the underlying problem and the proposed solution.

Daniel Gros is Director of CEPS.


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The pitfalls of official first-loss bond insurance
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