The International Monetary Fund (IMF) said
Thursday it would send observers to Spain later in October to write a
report about the European Union's bank bailout plan.
The report is to be presented to the Spanish government and the
EU Commission, said IMF spokesman Gerry Rice in Washington.
Spain has received pledges totaling up to 100 billion euros (130
billion dollars) for its troubled banking sector. The government,
however, does not expect the banks to need more than about 40 billion
euros.
In a report on the state of Spanish banks presented by the Bank of
Spain on Friday, consulting company Oliver Wyman estimated the total
needs of Spanish banks aat 53.7 billion euros.
Spain is not seeking help for its debts, said Rice. The focus of
the IMF in Spain will be limited to the banking sector. The observers
are to carry out their work from October 15-26.
The recession possibly will last longer in Spain than previously
expected, the IMF said. A prognosis by the central banks expects the
economy to shrink from 1 per cent to 1.5 per cent. That is two to
three times more than the Spanish government projects in its proposed
budget for 2013.
