BADEN-BADEN, Germany, Oct. 24 (Reuters)—Munich Re backs the ideaof using insurance to help resolve Europe's sovereign debt crisis,a board member of the world's biggest reinsurer said on Monday.

“Munich Re supports the proposal to use the €726 billion ($1trillion) of EFSF funds to insure sovereign debt,” Munich Re boardmember Ludger Arnoldussen told a journalist briefing. The EFSF isEurope's debt crisis rescue fund.

“It's a good way of addressing the immediate problems,” he said,adding that the idea, which is modeled on credit insurance and hasbeen pushed by Allianz, would help mobilize private investment intosovereign debt.

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