Eurogroup pushes to work out rules for direct ESM aid

Eurogroup chief Jeroen Dijsselbloem says eurozone finance ministers will return to their push to work out rules for channelling aid from the European Stability Mechanism directly to banks.

“What has been agreed in the main points must be worked out,” Mr Dijsselbloem said in an interview yesterday en route to Larnaca, Cyprus. “Several elements are under discussion.” He didn’t set out a timeframe for the talks.

Progress toward enabling direct bank recapitalisations — which could shore up lenders without piling more debt on to their home country’s governments — has been sidelined this year as ministers pushed to complete a bank resolution law.