Plans proposed by the International Monetary Fund (IMF) and European government leaders for a larger bailout fund are expected to be backed by G20 finance ministers, during a summit in Paris this Saturday. Proponents say that the additional funds would help provide monetary assistance to indebted countries and contribute to averting the current debt crisis to preserve the eurozone.

Along with the increased bailout funds, the IMF is also expected to gain support for an improved rescue facility fund, which would complement the comprehensive €440 billion European financial stability facility fund that was designed to protect investors who invest in European sovereign debt.

The proposal for increased bailout funds comes just as several eurozone member nations are about to implement a massive insurance fund that would allow more comprehensive guarantees when underwriting to more indebted nations, like Greece. Many economic analysts believe that Greece will default on the majority of their debts, being able to repay only 50% at most. In addition, some have expressed concern that some type of protective policy may need to be implemented to keep similar defaults from occurring in Spain, Portugal, and Italy.

Chancellor George Osborne has also stated that he’s “confident” that leaders of the eurozone, if given the support of G20 finance ministers, would be in support of more extensive austerity measures to help preserve the eurozone. Next month, G20 finance ministers are scheduled to discuss austerity measures that could alleviate some of the problems associated with the sovereign debt crisis. Members of some of the largest investment groups in the world have stated that it is imperative for finance ministers and European leaders to come to an agreement soon to prevent the possibility of several countries going bankrupt, particularly Spain and Italy.

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