Brussels, 17/05/2010 (Agence Europe) - The financial exit strategy will again be the subject of Council conclusions on Tuesday 18 May. EU finance ministers will specify certain elements allowing for the gradual, transparent and coordinated suppression of aid programmes for financial institutions. After reaching agreement on a number of factors to be taken into account in the implementation of exit strategies, the Ecofin Council had called on the Commission to pursue its analysis on bank debt guarantees, especially on the cost of guaranteed and non-guaranteed funding and on the development of market funding in the banking sector (EUROPE 10099). According to draft conclusions to be adopted without debate on Tuesday, the Council welcomes the Commission's work with a view to giving greater encouragement to the suppression of these guarantee programmes, and agrees that it is “appropriate to apply an adequate increase of the guarantee fees in order to bring funding costs closer to market conditions, and urges the application of new conditions as from July 2010”. Given the improved access to liquidity on the markets, the Council also considers that “banks continuing to heavily rely on guarantees and drawing on new guarantees hereafter and not under restructuring obligations should undergo a review of their long-term viability which will be conducted by the Commission”. The combination of tighter pricing conditions and the need to present a viability plan would incentivise banks to gradually exit guarantee schemes. (A.B./transl.jl)