Eurozone finance ministers agreed Thursday how the single currency's rescue fund, the European Stability Mechanism, will be able to inject funds directly into failing banks so as to minimise the risk posed to the financial system. "The main guidelines of how the ESM will operate have been agreed," Irish Finance Minister Michael Noonan said. The 500-billion-euro ($665-billion) ESM was set up initially to bail out struggling member states but in June 2012 when Spain's banks looked on the point of collapse, Brussels decided to extend its scope to allow direct aid for struggling lenders. This was in turn tied to having an overall bank regulator in place and EU leaders later approved a Single Supervisory Mechanism which centralises oversight of the eurozone's largest lenders under the European Central Bank. Since then, however, progress on the SSM new regulatory body has lagged, meaning it is only likely to be fully operational in the second half of 2014. Noonan added that ministers also agreed to allow some flexibility on using the ESM to deal with "legacy assets," bad loans amassed by banks before the rescue fund was set up. Ireland had to seek a full debt bailout worth 85 billion euros when its failed banks bust the government's finances in 2010 and has since argued that the ESM should be used to help ease the burden.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor