EC: No provision to lend to banks without State bailout

EC: No provision to lend to banks without State bailout

The European Commission has said there is no legal provision in the European Stability Mechanism (ESM) to lend money directly to banks without going through a State bailout.

As news about the major recapitalisation of Spanish banks emerged, Spain's Prime Minister Mariano Rajoy brought forward proposals for banks to receive funding from the ESM, without tying the State to the debt.

The proposal was welcomed in Ireland, but spokesperson for Economic Affairs at the European Commission Amadeu Altafaj says there is no legal provision to access EU funds without going through the sovereign.

More in this Section

Agriculture group says beef trade with China must resume at earliest opportunityAgriculture group says beef trade with China must resume at earliest opportunity

Four out of five Ryanair passengers still waiting for refunds – surveyFour out of five Ryanair passengers still waiting for refunds – survey

Irish economy set to experience largest annual decline in its historyIrish economy set to experience largest annual decline in its history

Mike Ashley fails in bid to trigger investigation into struggling DebenhamsMike Ashley fails in bid to trigger investigation into struggling Debenhams


Lifestyle

Cork author Conal Creedon tells Richard Fitzpatrick about some of his influences, from characters in his family’s shop to Ian Dury and Jim JarmuschCulture That Made Me: Conal Creedon on showbands, punk rock and playing the saw

A new thriller on Netflix is already causing a stir, and JK Rowling has set the internet alight with chapters of her fairytale, writes Des O’DriscollOnline Entertainment Tips: Snowpiercer, JK Rowling's new tale, and two films on Repeal

She's been sorting out Cork people for ages likeAsk Audrey: Normal People is basically a Maeve Binchy novel with mobile phones

Every evening, volunteers set out on bikes from Penny Dinners, delivering food and supplies to Cork’s homeless community. Donal O’Keeffe accompanied the Knight Riders on their rounds.Knight Riders bike around Cork city to deliver food to the homeless for Cork Penny Dinners

More From The Irish Examiner