IMF: No bailout plans in place for Spain

1 June 2012

The International Monetary Fund (IMF) has not currently got provisions in place to cover a potential Spanish bailout in the near future.

That is according to Christine Lagarde, managing director of the body, who yesterday (31 May) dismissed speculation the IMF has a contingency strategy to assist the ailing Iberian nation should it need help in the coming months.

Following a meeting with Spain's deputy prime minister, Ms Lagarde stated: "There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support."

Yesterday, the European Commission indicated that a banking union may be formed in the eurozone sooner rather than later - while joint bonds could also be introduced - as policymakers seek to stabilize the region's financial system.

And Mario Draghi, president of the European Central Bank, has added his voice to these calls by urging officials to clarify their position on the single currency quickly.

By Gary Cooper

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