Euro zone states to guarantee some bank debt -draft

PARIS, Oct 12 (Reuters) - Euro zone governments are ready to help banks weather the financial crisis by guaranteeing some bank debt issues, according to a draft statement released on Sunday during a summit of countries that use the euro currency.

"The objective of such initiatives should be to address specific failures in present refinancing conditions," said the draft document.

"With a view to complementing the actions taken by the European Central Bank in the interbank money market the government of the euro area are ready to take proper actions in a concerted and coordinated manner to improve market functioning over long-term maturities," it said.

The draft said that countries would "make available for an interim period...a government guarantee, insurance, direct purchase or other similar arrangements...of new medium-term (up to 5 years) bank senior debt issuance." (Reporting by Noah Barkin, writing by Crispian Balmer)