Spain confirms €100bn support request
Spain’s government, headed by prime minister Mariano Rajoy (pictured), has confirmed it will make a formal request for aid from the European Union, and is expected to receive up to €100bn of financial support.
Financial assistance will be provided through eurozone’s rescue mechanisms EFSF (European financial stability facility) or ESM (European stability mechanism) and will be allocated to the recapitalizarion of Spain’s banks, highly exposed to toxic real estate assets.
According to a statement from eurozone finance ministers, the Spanish government will retain the full responsibility of the financial assistance.
It is understood that at the moment the International Monetary Fund will not contribute any funds to the rescue plan, but will support the implementation and monitoring of the financial assistance.
Spain is the fourth eurozone country to ask for assistance after Portugal, Ireland and Greece, but Spanish officials have denied the country is in the same position as the others. Luis de Guindos, economy minister, said the country is asking for financial support which is not a full bailout.