News Column

Spain Says No Need to Ask for Rescue Now

Nov. 6, 2012

Spain's Economy Minister Luis De Guindos Monday said nobody has pressured Spain to request a new finance rescue and the country's treasury is "well financed" for this year.

"It (Spain) is doing all the possible effort" to clean its bank system and to make all the necessary budget adjustments," said De Guindos, who is taking part in the G20 Finance Ministers and Central Banks' Governors held in Mexico City.

"There hasn't been any kind of pressures, and there won't be. The government could not accept them," De Guindos said at a press conference, reaffirming the position of Spain's Prime Minister Mariano Rajoy of not requesting international support to pay the country's debts.

The minister said Spain has a situation of "relatively loose liquidity" for the rest of the year.

Hence, the Spanish minister rejected that Spain will request in the short term a new rescue, as some sources from G20 recently said.

In the last days, European sources affirmed Spain could appeal to a bond-buying program from the European Central Bank to clean its finances.

The European Central Bank conceded a loan for up to 125 billion U.S. dollars to clean the Spanish troublesome bank sector, after in the last half year several financial institutions in that country recognized lack of liquidity.

The Spanish government analyzes all the implications, said De Guindos, "and when it considers it's proper, it will take a proper decision."

Spain is suffering its second recession in the last three years, where unemployment is higher than 25 percent.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: (c) 2012 Xinhua News Agency - CEIS.

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters