Antonio Borges as the head of the IMF's Europe program said that the eurozone's bailout fund had to get more firepower and new tools. For helping it, he said that the IMF might intervene in bond markets for keeping the crisis which engulfing large economies like Italy and Spain. The eurozone had received contribution around 80 billion euros ($A112 billion) to bailouts, about a third of the total, but it had never intervened in open markets.
The currency union's debt troubles have increased severely as most investors expect a default by Greece and fear much larger Italy and Spain would be dragged into the crisis. In public statements, IMF officials insisted that agreements which had been made at a eurozone summit in July that would give a first range of new powers to the region's bailout fund and tentatively offered a second 109 billion euro bailout for Greece because losses would be accepted by banks on their Greek investments.
Borges said that bank and other private Greek bond holders who always accepted bigger losses. Athens had said if they didn't get the 8 billion euro installment of its first 110 billion euro bailout, they would start running out of money to pay salaries and pensions in mid-November. The rising uncertainty over Greece's fate made increasing market volatility and destabilizing the banking sector.