FRANKFURT (Dow Jones) – The first results of Stress tests with German financial institutions are on the authority of Bundesbank President Axel Weber available in July. The German Supervisors currently led stress testing with a larger Group of institutions by, first results are expected next month , Weber said there on Thursday in Frankfurt.
He added that it would be inappropriate, state exempt from these tests.
Looking at the euro area said the member of the Council of European Central Bank (ECB), the solvency problem of some countries was solved. Member States, ECB, the EU and the International Monetary Fund (IMF) had been mobilized funds that the Debt of Greece, Portugal, Spain and Ireland from 1148 billion EUR exceeded, "said Weber. You must already extremely pessimistic Assumptions go out, if you think that this money not enough should pay to compensate for problems of these countries.
The Bundesbank president referred in his calculations, the Government bond purchases by the ECB, while other ECB officials so far had always emphasized the purely "technical nature" of these purchases.
Weber said if the system remains a month for bonds buy something over 50 billion, it could the volume of the European governments mobilized resources according to his calculations that the outstanding debt by the end of the year but probably already at the end of the summer reach.
-By Geoffrey T. Smith, Dow Jones Newswires, +49 (0) 69 29 725 300
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