Eur60 Billion Euro Zone Bailout Fund to Save Banks
On Thursday, finance ministers in the Euro zone agreed to systematically rescue important banks. The euro zone bailout fund will have Eur60 billion with 20% coming from the government. The said 20% will comprise the needed capital injection. The statement was released by a euro zone official.
The finance ministers of the Euro zone set out a plan to rescue said banks from eventual failure. The directive is a long-promised move that aimed to break a downward spiral between bad banks and their indebted home countries.
Legislators hoped that it will turn galvanize interbank lending and borrowing. Other hopes included the start of having the euro zone economy move after a lengthy recession period.
The budget for bank rescues is within the middle of a 50-70 billion range and was prepared for the meeting. The 20% came from government contribution and is the upper limit of the 10-20% band that was under consideration.