Spain accepts bank bailout
Eurogroup ministers discuss 100-billion-euro rescue package for financial system
Economy Minister Luis de Guindos announced Saturday evening that the government intends to ask for a European bailout to recapitalize Spain's banking sector. The package will total 100 billion euros.
He added that the amount of the rescue package would be "sufficient" to meet the needs of the banking sector as identified by the audits being carried out by two independent appraisers and the estimates of the IMF, plus "a significant margin."
As the financial assistance as defined by De Guindos will be to attend to the needs of the banking sector, the conditions that will be imposed for its disbursement will be linked exclusively to the specific loan to the financial sector.
The loan will be received under "very favourable conditions."
The funds to be granted will be received by the state Orderly Bank Restructuring Fund (FROB).
The Eurogroup decided a bailout of 100 billion euros, after the IMF had indicated that a sum of 40 billion would be sufficient.
However, IMF director Christine Lagarde had said that under such circumstances, it is always better to overestimate requirements.