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Europeans to give concrete figures on rescue Monday

12 October 2008, 22:32 CET

(PARIS) - European governments that agreed on a joint banking rescue plan will reveal concrete cash figures for their measures on Monday, French President Nicolas Sarkozy said.

"The time for decisions on figures is tomorrow," Sarkozy said Sunday at a summit of leaders of the 15-nation eurozone single currency bloc that yielded the plan.

The leaders agreed to jointly confront the banking crisis by recapitalising banks and guaranteeing inter-bank lending but there was no figure put forward in the joint statement.

Belgian Prime Minister Yves Leterme said earlier that several leaders wanted to put a cash figure on the plan at the summit.

But Leterme's finance minister had said it might take a few days to agree on figures, despite concerns that when markets open on Monday traders will be looking for signs that Europe is serious about its rescue plan.

"What we need now is for each country to fix the sum that it wants to put aside. This should happen by Wednesday," Didier Reynders told reporters.

On Wednesday, the 15 nations will meet again in Brussels, this time also with the remaining 12 European Union members that have not adopted the euro.

"I think that this evening there will be a consensus in the eurozone and I hope that on Wednesday the whole EU will agree on two principles: the need to recapitalise banks where necessary, and the need for states to guarantee loans where that can permit liquidity," Reynders said.

"What we're hoping is that in the coming days we can go a step further and say how much in terms of financial means the states are ready to put on the table. I think if all the states announce this, we won't have a true European fund, but we'll know how much we have to restore the financial system."

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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