Slovak Finance Minister Peter Kažimír has described the final draft of a directive concerning money market funds approved by the EU following three years of talks as a milestone. He said the legislation will contribute towards increasing the EU's financial stability.
Kažimír stressed it will help to regulate the shadow banking system "with the goal of significantly boosting the EU's financial stability". A breakthrough in the talks occurred thanks to intense negotiations on the political and technical levels initiated by Slovakia as the presiding country of the EU Council, Kažimír noted.
The main goal of the legislation is increasing the ability of money market funds to resist pressure related to the paying of yields in stress conditions without endangering depositors' investments.
