Arab Today, arab today imfbanks need urgent access to eurozone fund
Last Updated : GMT 21:09:51
Arab Today, arab today
Arab Today, arab today

IMF:Banks need urgent access to eurozone fund

Arab Today, arab today

Arab Today, arab today IMF:Banks need urgent access to eurozone fund

Washington - AFP

The IMF urged the eurozone to move quickly Wednesday to halt contagion from the continent\'s public debt crisis, by granting embattled banks access to an emergency fund. The International Monetary Fund suggested that authorities could expand the use of the European Financial Stability Facility, originally designed to bail out countries, to directly aid the banks. \"Some European banks urgently need to bolster their capital levels,\" the IMF said in its semiannual Global Financial Stability Report. \"In current market conditions, however, this may not always be possible, so public backstops, first at the national level and ultimately through the European Financial Stability Facility should be used to provide capital to banks as needed,\" the IMF said. Launched in May 2010, the EFSF was intended to help eurozone economies in trouble. In July, leaders agreed a set of reforms to expand the scope of the EFSF, including allowing it to recapitalize banks through loans to governments. But that plan requires parliamentary ratification by the zone\'s 17 member nations. To date, only the parliaments of France, Belgium, Italy and Luxembourg have approved. \"Some banks may need to do very little, but others -- especially those heavily reliant on wholesale funding and exposed to riskier public debt -- may need more capital,\" Jose Vinals, head of the IMF\'s monetary and capital markets department, said at a news conference. The IMF estimated the eurozone debt crisis has piled up 300 billion euros in sovereign credit risk for banks in the European Union in the past two years. Of the total, 60 billion euros comes from the sovereign debt in Greece, 20 billion euros from Ireland and Portugal, and 120 billion euros from Belgium, Spain and Italy. The IMF estimated another 100 billion euros in sovereign credit risk were linked to the banks of those six countries. Considering the magnitude of these risks, and that \"markets are likely to remain volatile,\" the IMF warned that banks may find it impossible to access capital on the markets. Many analysts say that Italy or Spain could be the next dominoes to fall in the escalating eurozone crisis, which so far has witnessed massive bailouts for debt-ravaged Greece, Ireland and Portugal. On Wednesday, Lloyd\'s of London said it had slashed its exposure to European government debt and pulled cash out of some of the region\'s banks amid the deepening eurozone crisis. \"Given the uncertainty around the eurozone, it\'s only natural that we would seek to reduce any potential downside risk,\" Lloyd\'s Finance Director Luke Savage told Dow Jones Newswires. \"As a result, we\'re not holding government debt of any peripheral EU country and have sought to reduce our exposure to banks in these countries.\" The IMF devoted a large section in the report to Italy, the third-largest economy in the eurozone that holds the second-largest largest debt pile, of more than 1.9 trillion euros. \"Given the systemic size of the bond markets in Italy and the sovereign funding needs there, these risks have become key drivers of market conditions, increasing the potential for spillovers across different asset markets,\" the IMF said. Italy\'s debt \"remains highly sensitive to a rise in funding costs.\" On Tuesday, the IMF\'s chief economist, Olivier Blanchard, called on the eurozone to be ready to help Italy if \"the markets start believing that Italy\'s debt is not sustainable.\"  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imfbanks need urgent access to eurozone fund Arab Today, arab today imfbanks need urgent access to eurozone fund

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imfbanks need urgent access to eurozone fund Arab Today, arab today imfbanks need urgent access to eurozone fund

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday