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.
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