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Euro zone bailout fund could be backstop for resolution fund: ECB

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(Globalpost/GlobalPost)

VILNIUS (Reuters) - The euro zone's permanent rescue fund European Stability Mechanism (ESM) could function as a backstop to the planned bank resolution fund - to be filled with money from the bloc's banks - in the transition period, an ECB policymaker said on Friday.

"If for example in the build-up phase of this fund one needs a back stop, this could be in a physically neutral way the existing ESM," European Central Bank board member Joerg Asmussen said. The ESM would lend to the not-yet filled fund and would be repaid later once banks have paid in their contributions.

(Reporting by Annika Breidthardt, Jan Strupczewski and Martin Santa)

http://www.globalpost.com/dispatch/news/thomson-reuters/130913/euro-zone-bailout-fund-could-be-backstop-resolution-fund-ecb