Spanish banks 'do not need full $126bn bailout'

4 September 2012

Debt-addled Spanish banks will probably not require the full €100 billion ($126 billion) bailout fund provided to them by eurozone member states.

That is according to Luis de Guindos, the country's economy minister, who has indicated that Spain's fiscal crisis is not as deep as had been feared, which means many of its lenders are in a position to resist the financial pressure they are under.

Earlier this year, countries in the eurozone came together to create this nine-figure sum to protect the Iberian nation's ailing banking sector.

However, during an interview with the Onda Cero radio station, Mr de Guindos noted that "in principle, it looks like not all of the €100 billion will be used", although Bankia - the country's most troubled financier - will receive immediate help.

In addition, the minister said policymakers in Madrid have no plans to implement further austerity measures in the near future.

"Spain has already set out a path which is sufficient for the problems we face," he added.

By Tony Aynsley

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