Banks in the eurozone will suffer "considerable" loan losses in 2010 and 2011, potentially leading to €195bn (£165bn) in futher write-downs, the European Central Bank (ECB) warns.
In its latest Financial Stability report, the ECB says public finances pose the biggest threat to the eurozone, the Telegraph reports. "We are experiencing now a second wave of write-downs, which relate to the performance of loans," the ECB's vice-president Lucas Papademos said. The report comes as figures show May was the worst month for European stock markets since February 2009, because of fears about a sovereign debt crisis in the region. The FTSE 100 lost around 365 points, or 6.6%, in May which is the worst monthly performance since a 7.7% fall in February last year during th...
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