EU negotiators reach deal on early losses for bank creditors

By Reuters

Dec 11, 2013 06:16 PM EST

Bondholders and large depositors in a failing bank face taking losses from the start of 2016, European Union negotiators have agreed, a European Parliament lawmaker said on Wednesday.

The law, if approved by EU ministers, will make losses for senior bondholders and large savers a permanent feature of the bloc's response to banking crises and mark another milestone in the reform of an industry that triggered economic turmoil.

"It's all done," said Sharon Bowles, one of the lawmakers involved in the talks, adding that the rules would come into place from January 2016.

The agreement to accelerate the introduction of the regime by two years to Jan. 1, 2016 was reached between members of the European Parliament and negotiators representing EU countries. It now goes to EU ministers for approval next week. 

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