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18 Feb 2014
Eurogroup head: Bank failure fund should be able to borrow on markets
FXStreet (Łódź) - During the second day of the Eurogroup meeting in Brussels Eurozone finance ministers continued discussing the process of resolving failed banks in the region, with a focus on the ways of boosting the credibility of the Single Resolution Mechanism.
No agreement has been reached yet, but Eurogroup chief Jeroen Dijsselbloem, who is also the Dutch Finance Minister, suggested that the common fund from which the closure of failed banks is to be financed, should be given access to financial markets, with national guarantees for the first ten years.
"If that is possible also for the colleagues, then that could be a very serious answer to the big question, ‘will there be enough money in the fund?’" Dijsselbloem said. "And I’d rather look at that direction to solve this issue, to answer this question, than to go into all these difficult and political, difficult debates about borrowing between compartments and speeding up of mutualization."
Eurozone Finance Ministers will continue discussing the SRM on March 10.
No agreement has been reached yet, but Eurogroup chief Jeroen Dijsselbloem, who is also the Dutch Finance Minister, suggested that the common fund from which the closure of failed banks is to be financed, should be given access to financial markets, with national guarantees for the first ten years.
"If that is possible also for the colleagues, then that could be a very serious answer to the big question, ‘will there be enough money in the fund?’" Dijsselbloem said. "And I’d rather look at that direction to solve this issue, to answer this question, than to go into all these difficult and political, difficult debates about borrowing between compartments and speeding up of mutualization."
Eurozone Finance Ministers will continue discussing the SRM on March 10.