Eurogroup meeting: outcome
On Thursday euro zone’s finance ministers agreed on guidelines for how the ESM bailout fund could directly recapitalize failing banks in the bloc's weak economies. They agreed to limit such direct investments to 60 bln euro of the 500 bln euro fund and to make such capital injections through a special subsidiary.
Eurogroup said they hoped to launch this mechanism by the second quarter of 2014 — in time for anticipated stress tests aimed at determining the strength of euro-zone banks and before the ECB starts supervising them.
EU finance ministers also answered the letter of Cyprus president Nicos Anastasiades, who asked creditors to review the conditions of bailout program. According to Eurogroup, Cyprus must carry out its bailout plan quickly and with determination - that would help lift capital controls in the Mediterranean island.