Brussels, 19/06/2012 (Agence Europe) - The German central bank, Bundesbank (Buba), has rejected the idea of a redemption fund in the eurozone, joining the German government's view that the idea does not provide sufficient guarantees that loans would actually be paid off. Buba says that the EFSF and ESM bailout funds are the only credible alternative because their loans come with strict strings attached and high interest rates. Even partial pooling of debt would act as a disincentive for countries to sort out their public finances and therefore lead to a hike in the low interest rates on Germany's debt. Last week, the European Parliament backed the redemption fund idea, initially mooted by German government advisors in November 2011. (EL/transl.fl)