Euro zone governments will be expected to contribute 10-20 percent of the cost of recapitalizing a bank in their country if the institution were to be directly recapitalized by the euro zone bailout fund, a senior EU official said.
"There will always be a certain element of sharing of such recapitalization by the member states concerned," the official said.
Continue Reading Below
Euro zone finance ministers will discuss the proposal at an informal meeting in Dublin on Friday.
The official said that the contribution from a government was meant to make the authorities of the country interested in keeping the bank healthy.
(Reporting By Jan Strupczewski and John O'Donnell)