Spanish PM welcomes EU support for banks.
Spanish Prime Minister Manuel Rajoy struck a resolutely optimistic note . He said he was "very pleased" with the EUaid of 100 billion euro given to banks in the country but refused to speak of a "rescue".The EU assistance was granted on condition of a strict supervision of Spain's banking system.
Source : https://www.marocafrik.com/english/Spanish-PM-welc...
"I am very pleased, I think we've reached a milestone," he told the press. After denying almost to the end that it would need assistance, Spain's the EU areas fourth largest economy has finally accepted a deal which makes it the fourth country, after Greece , Ireland and Portugal, to receive external EU assistance. "No one pressured me (...) it is I who have been pushing because I wanted a credit line to solve a major problem we have here",Rajoy said.
The objective of this plan is to clean up the Spanish banks, overwhelmed by their exposure to the property sector, which by the end of 2011, saw some 184 billion euros in credit issues, this includes some loans that may never be repaid. The EU loan will reach one hundred billion euros and will be injected into the main Spanish public assistance funds to the banking sector ), which will then allocate this money to banks that request it.
Bank bailouts have been widely unpopular with the EU public .Angela Merkel has called for greater political union in the EU which includes financial accountability. Her call for austerity has been countered by France's Prime Minister Francois Hollande's call for policies which promote growth.
Spain saw its financial rating downgraded to junk status and admitted that it was almost impossible to sell its bonds at competitive rates.
It has the highest unemployment in the Eurozone and as the Prime Minister made clear the Spanish people will face continued austerity for soemtime to come.
Christine Lagarde, Managing Director of the International Monetary Fund (IMF), welcomed the announcement by the Eurogroup of its willingness to financially support Spain in its efforts to further strengthen the country’s banking sector.
“I strongly welcome the statement by the Eurogroup, which complements the measures taken by the Spanish authorities in recent weeks to strengthen the banking system. Providing a credible back stop to recapitalize weaker segments of the banking system has been a key recommendation of the IMF's recent Financial Sector Assessment Program (FSAP) conducted in Spain. The willingness of Spain’s Euro Area partners to financially support the Fund for Orderly Bank Restructuring (FROB) with up to EUR 100 billion is a crucial step for the success of the Spanish authorities’ strategy. This scale of proposed financing, which is consistent with the capital needs identified in the FSAP, gives assurance that the financing needs of Spain's banking system will be fully met.
“The IMF stands ready, at the invitation of the Eurogroup members to support the implementation and monitoring of this financial assistance through regular reporting."
The objective of this plan is to clean up the Spanish banks, overwhelmed by their exposure to the property sector, which by the end of 2011, saw some 184 billion euros in credit issues, this includes some loans that may never be repaid. The EU loan will reach one hundred billion euros and will be injected into the main Spanish public assistance funds to the banking sector ), which will then allocate this money to banks that request it.
Bank bailouts have been widely unpopular with the EU public .Angela Merkel has called for greater political union in the EU which includes financial accountability. Her call for austerity has been countered by France's Prime Minister Francois Hollande's call for policies which promote growth.
Spain saw its financial rating downgraded to junk status and admitted that it was almost impossible to sell its bonds at competitive rates.
It has the highest unemployment in the Eurozone and as the Prime Minister made clear the Spanish people will face continued austerity for soemtime to come.
Christine Lagarde, Managing Director of the International Monetary Fund (IMF), welcomed the announcement by the Eurogroup of its willingness to financially support Spain in its efforts to further strengthen the country’s banking sector.
“I strongly welcome the statement by the Eurogroup, which complements the measures taken by the Spanish authorities in recent weeks to strengthen the banking system. Providing a credible back stop to recapitalize weaker segments of the banking system has been a key recommendation of the IMF's recent Financial Sector Assessment Program (FSAP) conducted in Spain. The willingness of Spain’s Euro Area partners to financially support the Fund for Orderly Bank Restructuring (FROB) with up to EUR 100 billion is a crucial step for the success of the Spanish authorities’ strategy. This scale of proposed financing, which is consistent with the capital needs identified in the FSAP, gives assurance that the financing needs of Spain's banking system will be fully met.
“The IMF stands ready, at the invitation of the Eurogroup members to support the implementation and monitoring of this financial assistance through regular reporting."
Source : https://www.marocafrik.com/english/Spanish-PM-welc...