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Spain to Request For EU Bailout Monday

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2012-06-25

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Spain will officially ask the European Union to rescue its troubled banking sector this Monday.
Spanish Finance Minister Luis de Guindos said his government will make a formal request by handing over a letter containing the conditions of the financial aid.
Two independent audits show the country needs around 62 billion euros‚ roughly 78-billion U.S. dollars‚to recapitalize its banks.
Spain has been offered up to 126 billion dollars‚ an amount that ratings agency Fitch believes the country may need in the worst case scenario.
Spain is hoping for a direct injection of the EU money into its weak lenders‚ but the idea is facing strong opposition from Germany and some other northern European countries‚ as it could drive Spain's sovereign debt to dangerous levels.
Reporter : ssung86@arirang.co.kr

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