DHAKA: Spain is set to ask for a bank bailout from the eurozone, becoming the fourth and largest country to seek help since the single currency bloc`s debt crisis erupted.
Spain "declares its intention to request European financing for the recapitalisation of those banks that need it," Luis de Guindos, the economy minister, told a news conference in Madrid on Saturday.
De Guindos said the aid will go to the banking sector only and thus does not come with new austerity conditions attached for the economy in general.
"There are no conditions of any kind on economic reforms outside of the financial sector," he said.
The minister said it was not yet clear which European bailout structure would be used, whether the European Financial Stability Facility or the European Stability Mechanism.
He gave no figure as to how much Spain will request, saying that he would wait until independent audits of the country`s banking sector have been carried out before asking for a specific amount.
But he said that the amount of the rescue, a maximum of 100bn euros (about $125bn), was more than enough and provided a margin of security that no one could question.
Finance ministers from the 17 countries that use the euro on Saturday said they were ready to give Spain up to $125bn in a bailout.
BDST: 0845 HRS, JUN 10, 2012
Source: Aljazeera
SA
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