Cost of closing bank in the eurozone will initially fall to home country

The cost of closing a eurozone bank will initially be borne almost fully by its home country, but the obligations of eurozone partners will gradually rise to be shared equitably after 10 years, under the terms of an EU proposal.

The proposal, prepared by Lithuania which holds the rotating presidency of the EU, will be discussed at an extraordinary meeting of senior EU officials in Brussels today.

Separately, several European finance ministers and senior EU officials will meet again in Berlin today to attempt a compromise for rules to wind down stricken banks.