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

Which countries do not have an official language?

According Henry Hitchings Language Wars (2011) these nations do not currently have an official primary language: UK see hereUSAthough 20 states now have an official language — see hereAustralia 80% speak English but not officialPakistan Urdu became official language in 2015 but  only spoken by 8% of population.EthiopiaAmharic is official language but most spoken is OromoSomaliaEritrea Costa Rica Why these countries?Read extended transcript on Medium 

About the English Language - Teaching Packonly £2.99

Why is English not the official language of England?

58 countries list English as an official language - but not the UK. 

Why does the USA not have an official language?

58 countries have English as an official language - but not the USA.