Spain committed to 6.3 pct deficit target in 2012 -EconMin

MADRID, Sept 3 Mon Sep 3, 2012 1:00pm IST

MADRID, Sept 3 (Reuters) - Spain is committed to meeting its EU-agreed deficit target of 6.3 percent of its gross domestic product in 2012 despite bad data for the first seven months of the year, Economy Minister Luis de Guindos said on Monday.

The country's central government deficit was 4.6 percent of gross domestic product (GDP) from January to July, or 48.6 billion euros, the Treasury said on Friday. This was far from its path to achieve end-of-the-year objectives

"The commitment of the government to meet the 6.3 percent target is very high. It is our number one priority when it comes to our economic policy," De Guindos said on Onda Cero radio.

De Guindos also said the state bank fund FROB would inject capital into state-rescued lender BFA-Bankia in the next hours after the bank reported losses of over 4 billion euros ($5 billion) in the first half of 2012.

As Spain is inching towards seeking aid to service its sovereign debt after requesting a 100-billion-euro lifeline for its banks in June, De Guindos said Madrid was still waiting to know about the conditions of such a program before taking a decision but said he was confident the European Central Bank would step in to help euro zone countries.

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