Spain may send formal bank aid request today

Date: Friday 22 Jun 2012

Spanish Finance Minister Luis de Guindos did not send an official petition for bank aid yesterday in the Eurogroup meeting, indicating that he would do so in the coming days.

However, European officials want De Guindos to move quicker after having already received the bank sector evaluations from consultancy groups Roland Berger and Oliver Wyman.

"We would expect the Spanish authorities to put forward a formal request for financial assistance by next Monday," said Eurogroup President Jean-Claude Juncker. On the other hand, Spanish daily El Mundo has reported that De Guindos confirmed that he would "immediately" send the request.

"The exact amount of money will be known by the end of the (memorandum of understanding) negotiations...The financial assistance will be provided by the EFSF until the ESM becomes available, and then it will be transferred to the ESM," said Juncker.

The debate over which fund will be used will be prevalent because the ESM, unlike the EFSF, would have seniority on the debt, potentially hurting demand for Spain's sovereign debt.

MG

Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange Market.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE