Eurozone agrees on direct bank recapitalisation in 2015

Otmane El Rhazi from Macro feed.

The Eurozone’s bailout fund, the European Stability Mechanism, could directly invest in a troubled bank next year, after 8 percent of the bank’s total liabilities are written off, the chairman of euro zone finance ministers said on Monday.
The bloc’s leaders agreed in 2012 that the ESM must have the option of directly buying a stake in a troubled bank to break the “doom loop” that binds indebted governments to the unstable banks they are trying to prop up.

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