By Spiros Sideris – Athens
In an initial agreement for the purge of the problematic banks with a model “a la Cyprus” has been reached between the Ministers of Finance of Eurozone according to Jeroen Dijsselbloem’s staements, to the american broadcast network CNBC.
The said agreement is expected to initiate a “rescue” process with the same means (bail-in), analogues to the one that was implemented in Cyprus, where the big capital owners, of the problematic banks, will be affected first with a “haircut” of their deposits in order to support the said banking institutions.
Consequently, if more cash flow is needed, national funds will be used, while if a need for further funding arises, the money will be drawn on from a period of 5 to 10 years from a common Eurozone fund.
“In my opinion, a European fund will be created, while mainly during the first years there will be some form of national responsibility”, said the president of Eurogroup Jeroen Dijssebloem, to add that if this proves problematic there will be the option to turn to the European Stability Mechanism (ESM), according to the rules that have been set.
In the meanwhile, the US Mass Media mention of the “compromising draft” of agreement in Eurozone, according to which there is a prediction for the surrender of part of the member-states’ dominion to a central restructuring and purging authority of the problematic banks and the creation of a “common funding network”.
It is also being pointed out, that the creation of a regulatory body was decided, which will be responsible for the proposals concerning the re-funding or closure of the european banks when it is deemed necessary and the approval of the European Committee is required or in the case were a proposal is not adopted.
Finally, it is being pointed out that the European Authority’s funds will come out from the National Authorities funds for a period of ten years, while consequently they will be drawn from a special tax that will be imposed on the banks and the main shareholders.