EU finance chiefs to mull creditor haircuts

michel-barnier-ec

Europe's finance ministers will this weekend consider the application of haircuts to uninsured bondholders in the event of future bank bailouts, and the use of contingent capital, it emerged on Wednesday.

Michel Barnier, the European Commissioner for internal market regulation, mooted the idea in a letter to Elena Salgado, the head of the Economic and Financial Affairs Council (Ecofin), the European Union's grouping of finance and economy ministers from member states.

"From a political perspecti

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