Spanish banks 'need up to $77bn extra funding'

22 June 2012

Banks in Spain will require up to €62 billion ($77 billion) in additional funding if they are to survive the country's ongoing debt crisis.

That is according to the findings of an independent review of the Spanish financial system conducted by eurogroup, which has underlined the extent of the problems these firms face at present.

Earlier this month, prime minister Mariano Rajoy announced the country was willing to accept as much as €100 billion in international aid for its ailing banking system.

And Jean-Claude Juncker, head of eurogroup, believes Spain will make a formal request for more funding by Monday (25 June) at the latest.

Meanwhile, Christine Lagarde, head of the International Monetary Fund (IMF), has called on European nations to take a more collective approach to resolving the crisis.

"A determined and forceful move towards a complete European monetary union should be reaffirmed in order to restore faith in the system," she noted.

By Asim Shah

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