ECB revises writedowns estimate to the upside!

By IBTimes Staff Reporter | December 18 2009 12:29 PM

The ECB managed to spread a new wave of fear across the market, which is hammered with newly emerging pessimism, especially with Greece dilemma being the center of the attention. The ECB's Financial Stability Review today raised the banks writedowns estimates by 13% for the period running through 2007 till 2010 to total 553 billion euros, by that the region's banks have to writedown an additional 187 billion euros.

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The report also said that the rising deficit and government borrowing represents a risk to financial stability, and raised a new threat saying that some European banks are still very reliant on emergency funding.