BRUSSELS (MNI) – The European Commission on Monday rejected IMF
Managing Director Christine Lagarde’s view that Europe’s banks need
“urgent” recapitalisation to stop the financial crisis.
The EU is already taking measures to improve the capital position
of its banking sector, which is significantly better than it was one
year ago, said Amadeo Tardio Altafaj, spokesperson for EU Financial and
Monetary Affairs Commissioner Olli Rehn.
Stress testing of EU banks’ resilience in July has created a
“clearer picture” about what needs to be done, Altafaj said.
According to the EU’s plan, banks that need to raise more capital
have between six and nine months to raise new funds. While these should
be sought primarily from the private sector, public authorities will
step in if necessary, he said.
On the whole, “European banks are significantly better capitalised
than they were a year ago,” Altafaj said.
In the Commission’s understanding, the IMF is not asking the EU to
do more to recapitalise its banks, but the two sides are in close
contact, he said.
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