(MENAFN- Saudi Press Agency) Less than 80 billion euros (107 billion dollars) of the eurozone's permanent bailout fund should be made directly
available to ailing banks, dpa cited German Finance Minister Wolfgang Schaeubleas saying on Tuesday.
It is the first time a figure has been proposed for direct bank
recapitalizations under the European Stability Mechanism (ESM), which
should become possible following the establishment of a joint
eurozone banking supervisor next year.
The limit for bank recapitalizations should be 'clearly below the
80 billion euros capital paid in (to the ESM), somewhere between 0
and 80,' Schaeuble said after meeting his EU counterparts. Diplomats
later spoke of a figure around 40 billion euros.
The limit is contentious, as the eurozone states most afflicted by the crisis have hoped that direct bank recapitalization could prop up their banking sectors without adding to their sovereign debt.
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