Brussels, 22/09/2011 (Agence Europe) - The cost of the sovereign debt crisis of five eurozone countries, Belgium, Spain, Greece, Ireland and Portugal, has cost European banks close to €200 billion so far, according to a financial stability report published by the International Monetary Fund on Wednesday at the opening of its AGM in Washington DC, but IMF monetary affairs director Jose Vinals was keen to point out that this did not amount to an estimate of European banks' extra capital requirements in any way. He said that like its director general, Christine Lagarde, the IMF believes European banks must categorically increase their capital.
On Wednesday, the European Systemic Risk Board (ESRB) urged national bank supervisors to coordinate the process of banks increasing their capital, including by means of emergency instruments. In a press release, the ESRB says that the current eurozone bailout fund, the EFSF, should issue loans to governments of countries not introducing a structural adjustment programme, a move decided upon by the 21 July eurozone summit, but which has yet to be ratified by all 17 eurozone nations before it can come into force. (MB/transl.fl)