ECB made comments non performing loans in EuroZone might be worse than most expect

· ECB warns of additional bank losses in its Semiannual Financial Stability Review – banks in
the eurozone will suffer “considerable” loan losses this year and next; the combined losses could total
EU195B; says eurozone bank profitability likely to remain moderate; eurozone bank losses may
exceed current ests b/c of heightened sovereign risks and slowing growth owing to fiscal tightening
measures; that said, the ECB cut its cumulative forecast for eurozone bank losses for the period ’07-
’10 from EU553B to EU513B; the bank also noted that the sovereign debt issues could delay its exit
from extraordinary monetary stimulus – WSJ