Eurozone Bank Fund Talks Has Crucial Breakthrough

Ministers from eurozone countries have made progress towards creating a bank fund for dealing with failing banks.

Banks will be charged a levy which will build up a 55bn euro (£46.5bn, $76bn) fund over 10 years. If there is not enough money in the pot, national governments can supply funds, or borrow to do so.

Senior figures said the talks, which broke up very early on Wednesday, had made a “crucial breakthrough”.

More talks are planned later.

These will include the wider group that will bring in finance ministers from all 28 countries in the European Union, as well as those from the 17 countries that form the eurozone.

Olli Rehn, the EU economic affairs commissioner, said: “We have reached a crucial breakthrough.”

The outline plan for a Single Resolution Fund (SRF) is one favoured by Germany, which was keen to avoid leaving taxpayers paying for any future bank bailouts.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza