Montreal Gazette: European banks consider repaying government loans

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European banks consider repaying government loans

Confidence in economic recovery is taking root in Europe as big private-sector players continue to repay emergency government loans advanced at the height of last year's financial crisis. BNP Paribas, France's biggest bank, said Tuesday it plans to raise the equivalent of $6.3 billion U.S. by selling new shares to existing stockholders. The bank is offering the shares at a price 30 per cent below Monday's market close - but then its stock has almost doubled since January 1 and the market welcomed the rights offer. "Capital markets are completely reopened and we can reimburse the preferred shares that the bank issued to the Government," said the bank.<

Note EU-Digest: Regardless of what the banking community is saying they need to be regulated.