European banks are drafting recapitalization plans

27.10.2011 In the framework of Wednesday summit of states-members of EU the exact figures concerning European banks recapitalization were announced. 106,447 bln. euro are necessary to such credit organizations to cope with negative crisis effect.

The amount was calculated on the basis of European banks reports within the first half a year 2011. Also the heads of the states didn’t hide their fear of possible increase of the amount mentioned because of the indicators of Greek debt restructuring. The final calculations should be made by European banks association next month.

The banks will make up and submit for approval by national state authorities the plans of measures for recapitalization by the end of the year.

Expert’s opinion

“Huge sums are required by European banks for recapitalization process. Such normal work recovery of credit organizations is necessary. The banks today have a lack of assets and can’t provide credits. Recapitalization plans provided by the end of the current year to the state official bodies should bear fruit by the beginning of 2012 summer, as specialists predict”.

On the basis: www.expert.ru

Andrianova Irina ( the lawyer of international consulting department of “Honest & Bright” )