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- 11 Ottobre 2009
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BERLIN, April 20 (Reuters) - Germany's finance minister said
investors must be involved in future bank rescues in crisis
states but added Cyprus, where a bailout is imposing losses on
depositors, was still a unique case, a German magazine reported
on Saturday.
Asked whether the charge on depositors in Cypriot banks was
a one-off case, Schaeuble said: "The involvement of owners,
bondholders and uninsured depositors has to be the norm if a
financial institution runs into trouble," according to
Wirtschaftswoche.
"Otherwise we will never get a grip on the moral hazard
problem whereby banks which do risky business make big profits
but then burden the general public with their losses when they
fail," he was quoted as saying.
"That cannot be allowed."
Last month Dutch Finance Minister Jeroen Dijsselbloem, who
heads the Eurogroup of euro zone finance ministers, said Cyprus'
rescue programme represented a new template for resolving euro
zone banking problems and other countries may have to
restructure their banking sectors. [ID:nL5N0CH2X6]
His comments unnerved markets and he later put out a
statement that Cyprus was a specific case, that plans were
tailor-made for each situation and no models or templates were
used.
Schaeuble was quoted as saying Dijsselbloem had been
unfairly pilloried for his comments.
"But he said Cyprus could be a 'template' for the future.
Financial markets misunderstood that, thinking there was a risk
of Cyprus happening elsewhere. But that is not the case because
Cyprus is a very unique case."
Cyprus and international lenders decided that depositors who
had more than 100,000 euros in the two biggest Cypriot banks
would lose some of their money to contribute to the
recapitalization of the institutions, along with shareholders
and bondholders.
Earlier this week a European Commission document showed they
stood to lose up to 8.3 billion euros through the restructuring
of the two institutions. [ID:nL5N0D22EJ]
Schaeuble said Cyprus would get 10 billion euros in aid,
adding that it would not get any more because otherwise the
island's debt sustainability would not be guaranteed.
investors must be involved in future bank rescues in crisis
states but added Cyprus, where a bailout is imposing losses on
depositors, was still a unique case, a German magazine reported
on Saturday.
Asked whether the charge on depositors in Cypriot banks was
a one-off case, Schaeuble said: "The involvement of owners,
bondholders and uninsured depositors has to be the norm if a
financial institution runs into trouble," according to
Wirtschaftswoche.
"Otherwise we will never get a grip on the moral hazard
problem whereby banks which do risky business make big profits
but then burden the general public with their losses when they
fail," he was quoted as saying.
"That cannot be allowed."
Last month Dutch Finance Minister Jeroen Dijsselbloem, who
heads the Eurogroup of euro zone finance ministers, said Cyprus'
rescue programme represented a new template for resolving euro
zone banking problems and other countries may have to
restructure their banking sectors. [ID:nL5N0CH2X6]
His comments unnerved markets and he later put out a
statement that Cyprus was a specific case, that plans were
tailor-made for each situation and no models or templates were
used.
Schaeuble was quoted as saying Dijsselbloem had been
unfairly pilloried for his comments.
"But he said Cyprus could be a 'template' for the future.
Financial markets misunderstood that, thinking there was a risk
of Cyprus happening elsewhere. But that is not the case because
Cyprus is a very unique case."
Cyprus and international lenders decided that depositors who
had more than 100,000 euros in the two biggest Cypriot banks
would lose some of their money to contribute to the
recapitalization of the institutions, along with shareholders
and bondholders.
Earlier this week a European Commission document showed they
stood to lose up to 8.3 billion euros through the restructuring
of the two institutions. [ID:nL5N0D22EJ]
Schaeuble said Cyprus would get 10 billion euros in aid,
adding that it would not get any more because otherwise the
island's debt sustainability would not be guaranteed.