Advertisement

Spain agrees to EU financial aid plan

The flag of Spain is seen among the flags of various nations on June 8, 2012. Spain has come under pressure lately with government debt concerns, plaguing Greece, Portugal and Italy as well. UPI/ David Silpa
The flag of Spain is seen among the flags of various nations on June 8, 2012. Spain has come under pressure lately with government debt concerns, plaguing Greece, Portugal and Italy as well. UPI/ David Silpa | License Photo

MADRID, June 10 (UPI) -- Spain's finance ministry says it would use a massive bailout from the European Union to get the nation's banks back on solid ground.

Spain Saturday formally applied for assistance from the EU to the tune of up to $125 billion which would be used to "recapitalize" Spain's financial institutions.

Advertisement

Economy Minister Luis de Guindos told reporters Saturday the funds were not considered a "full bailout" but would add a level of security and stability to the banking industry.

thinkSpain said Sunday the latest assessments concluded that Spanish banks needed about 90 billion euros ($112.6 billion) to erase their combined debt. The rest would be used as a safety cushion.

Spain became the fourth and largest European nation to agree to emergency assistance amid the continent's continuing financial crisis.

The New York Times said there was an overall sense of relief in Europe and the United States that a plan was in place for Spain.

"It is a calming signal at a time when calming signals are badly needed," said Jens Boysen-Hogrefe, an economist at the Kiel Institute for the World Economy. "The uncertainty is still high and bad news can pop up anywhere in the euro area. This is not a final solution."

Advertisement

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement