–EU Juncker Says Hopes Stability Fund Operational By End-July
BRUSSELS (MNI) – The best way to recapitalise banks is via the
private sector, and government money will be used only as a last resort,
Cyprus finance minister Charilaos Stavrakis said as he arrived for a
meeting of finance ministers here on Monday.
It is “very, very important to show to the market that Europe means
business” by finalising the E440 billion European stability fund and
completing stress tests of EU-area banks, Stavrakis said.
“I’m hopeful that on balance European banks will come out well,” he
said.
He noted that Cypriot banks have some exposure to Greece and Greek
sovereign debt.
In the case that any EU banks need more capital, Stavrakis said,
“obviously if we can get money from the private sector, that’s ideal…
There are a number of other options…The most remote, the least
desirable, is the one of injecting government money,” he said.
Finance ministers are set to discuss the finer points of stress
tests for the EU banking system at their meetings here today and
Tuesday.
Austria’s finance minister Josef Proll told reporters there
wouldn’t be any political interference in the process, while Germany’s
Finance Minister Wolfgang Schaeuble said the tests were a “very
important step.”
EUROPEAN STABILITY FUND
Ministers are also set to finalise the European Union’s E440
billion support facility for member states in financial trouble, which
is still awaiting final approval from Slovakia.
“I do think that Slovakia will sign up before mid-July. The
instrument will be available, without any doubt, before the end of the
month,” Jean-Claude Juncker, Luxembourg’s Prime Minister and head of the
Eurogroup, said as he arrived for the meeting.
Slovakia’s finance minister Ivan Miklos told reporters he wasn’t at
the meeting to sign an agreement, but to negotiate.
“We will decide as soon as possible,” he said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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