Weakness in Europe’s banks ‘widespread’

BRUSSELS: Europe needs between 100 billion and 200 billion euros to recapitalise its banks to win back investor confidence and should put in place a comprehensive plan across the continent, according to the International Monetary Fund's (IMF) European Department director Antonio Borges.

“We are talking about figures of between 100 billion and 200 billion euros, which in our view is very, very small compared with the size of the European capital markets and compared with the resources of the new, enhanced EFSF (European Financial Stability Facility),” Borges said during a visit to Brussels, referring to Europe's bailout fund.

“There has been a lot of talk about French banks, but ... the problem is very widespread,” he said. “No banking sector in the world can sustain a generalised loss of confidence and we need to restore that confidence all over Europe.”

Borges also said the IMF would “definitely participate” in a second bailout package for Greece if the lender was happy about the country's determination to solve its debt problems. Reuters