Action is already being taken to prop up
under-funded banks, the European Union's executive said Monday in
response to criticism from the International Monetary Fund (IMF), according to dpa.
On the weekend, IMF chief Christine Lagarde warned that European
banks - which are exposed to the eurozone's sovereign debt crisis -
needed "urgent recapitalization."
"The process is ongoing, everything is ready for it to proceed
correctly," Amadeu Altafaj, spokesman for EU economy commissioner
Olli Rehn, told reporters in Brussels when questioned about the
In July, eight out of 90 banks - one from Austria, five from Spain
and two from Greece - were revealed as under-capitalized by European
Altafaj said they have "six to nine months" to raise funds on the
markets; failing that, public funds would step in.
The official also pointed out that overall, "European banks are
significantly better capitalized now than a year ago."