Spain To Seek Bailout

Luis de Guindos

Spain will seek financial help from its Eurozone partners but exactly how much won’t be known until private audits are undertaken, the country’s economy minister announced Saturday.

Earlier, European finance ministers discussed plans to offer Spain up to $125 billion (100 billion euros) in a bid to stabilize its banks — and ease concerns over the even bigger European debt crisis. That amount was described as an upper limit, not an indication of what Spain would ask for.

After Spain’s announcement, the Eurozone ministers issued a statement that they expected a formal request “shortly” and are “willing to respond favorably.”

Spain earlier said it wanted to wait for two independent audits — due by June 21 — before deciding on whether to seek aid, and it was not clear if those audits were being stepped up.

Spain had resisted asking for a bailout since previous ones for Greece, Ireland and Portugal came with demands for tax increases and spending cuts.

Economy Minister Luis de Guindos emphasized that the aid would not come with “micro-economic conditions”.

U.S. Treasury Secretary Tim Geithner issued a statement praising the “concrete steps on the path to financial union” for the Eurozone.

Investors and politicians have been increasingly concerned that Spain might not be able to find the money to prop its ailing banks by itself.

 

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