EU will aid banks that fail stress tests

AFP, Tuesday 12 Jul 2011

European Union governments will extend help to banks unable to withstand a new round of stress tests, say EU officials

European Union governments will provide help to any banks that fail a new round of stress tests on their ability to sustain new financial shocks, EU finance ministers said on Tuesday.

The ministers, in a statement, "confirmed that necessary remedial actions following results of test will be taken."

The statement said: "These measures privilege private sector solutions but also include a solid framework for the provision of government support in case of need, in line with state aid rules."

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