Skip to main content

What is an escrow account?

An escrow account is an account managed by a bank and dedicated to a special purpose - for example, the 'bail-out fund' created by the European Union to refinance member states. If Portugal did not have the funds to repay it debts, it could (temporarily) avoid credit default by drawing funds from the escrow account.

That might work for the smaller economies. But for Italy? Or France? Who will finance this safety net? And if they money was needed, would this mean a severe haircut for those funding the escrow account?

Comments

Popular posts from this blog

What is Globish?

Globish is a term invented by a French business man, Jean-Paul Nerriere, to describe the form English used as a lingua franca or common world language.

Top 10 words with the most entries in the Oxford English Dictionary?

Here are the words with the most separate entries in the OED: