EFSF denies buying its own debt

Europe's €1trn rescue fund has been forced to deny it bought some of its own debt following a report over the weekend that investors have rejected its bonds because of the worsening European debt crisis.

According to the Sunday Telegraph, sources have revealed the European Financial Stability Facility (EFSF) spent more than €100m buying up its own bonds in order to achieve its funding target. However, in a statement to Reuters, the EFSF said this was incorrect. "The EFSF did not buy its own bonds and the book was €3bn," an EFSF spokesman said, referring to the amount raised in last Monday's 10-year bond issue. Last week the EFSF announced it had successfully sold the 10-year bonds, the proceeds of which will be used to help finance Ireland. The Telegraph report claimed the EFSF cou...