Tuesday, 6 September 2011

BEUSSELS, Sept 6 (Reuters) - European finance ministry officials will discuss on Tuesday how governments can inject capital into struggling banks, an EU official said, amid concern about EU lenders and countries such as Greece.

The discussion about boosting banks' balance sheets follows renewed calls to do so by International Monetary Fund chief Christine Lagarde, and signals growing momentum towards tackling financial system weakness amid heightened market nervousness.

It follows a meeting on Monday among euro zone officials that examined progress in involving private investors in a second attempt to tackle Greece's debt problems.

There are growing concerns that not enough Greek bondholders will take up a bond-swap offer to ease Athens' debt burden -- a key element of a second 109 billion euro ($154 billion) bailout which, should it collapse, threatens further market turmoil.

http://www.reuters.com/article/2011/09/06/eurozone-banks-capital-idUSB5E7JM02B20110906