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HIGHLIGHTS-Spain economy minister at news conference
June 9, 2012 / 6:56 PM / 6 years ago

HIGHLIGHTS-Spain economy minister at news conference

MADRID, June 9 (Reuters) - Spain’s government said on Saturday it would seek up to 100 billion euros ($124.67 billion) in aid for its banks.

Following are key remarks from Economy Minister Luis de Guindos at a news conference, translated by Reuters.

WILL ASK FOR AID

“The Spanish government declares its intention to request European financing for recapitalisation of the Spanish banks that need it.”

“The amount requested will be sufficient to cover the estimated capital needs, as well as a margin that will give significant additional security.”

“It’s a maximum amount that clearly provides a margin of security, a figure has been established that cannot be questioned by anyone.”

CONDITIONS

“Since the funds being asked for are to attend to financial sector needs, the conditionality, as agreed in the Eurogroup meeting, will be specifically for the financial sector.”

“The FROB (Spain’s bank restructuring fund)... will act as intermediary for the government and will receive the funds before they are paid out (to the banks).”

“(This) will assure the availability of sufficient financing and that the sovereign risk will remain separate from the cleanup of the financial system.”

“It’s a loan that will be received with very favourable conditions, which will be determined in the coming days. They are conditions...that are more favourable that those of the market. Therefore it is in no way a rescue”

“What is being requested is financial support, that has absolutely nothing to do with a rescue.”

MECHANISM

“It could could either be the financing facility known as EFSF (European Financial Stability Facility) or the ESM (European Stability Mechanism). And that’s what we will clear up in the coming days.”

“The role of the IMF (International Monetary Fund)...is strictly an advisory one in the realm of the financial sector.”

THE EURO

“At the same time this will help return confidence to the project of the common currency.”

SPAIN‘S ECONOMY

“(The deal) will allow all kinds of doubts that existed around the Spanish banking sector to be dissipated. I think it’s an agreement that will favour the recovery of the Spanish economy, the credibility and confidence of the Spanish banking sector (...) and that Spanish entities will be in a condition to concede credit.”

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