Exclusive: Euro zone to share costs of bank closures gradually – proposal

A two Euro coin is checked in the Austrian Mint headquarters in ViennaThe cost of closing down a euro zone bank will initially be borne almost fully by its home country, but the obligations of euro zone partners will gradually rise to be shared equitably after 10 years, under the terms of an EU proposal seen by Reuters on Saturday. In this way, by the tenth year, the home country fund would only have to contribute 10 percent of their funds before calling on its euro zone partners, who, like the home country, would be obliged to contribute whatever was required – up to 100 pct of their total funds – to pay for the bank closure.

Business News Headlines – Yahoo! News

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