Spain calls on US and IMF for political support in helping the banking system
The United States and Spain discussed the possibility that direct loans from Europe's emergency fund could be a solution for ailing European banks, Spanish Deputy Prime Minister Soraya Saenz de Santamaria said Thursday.
With Spain's own frail banks weighing heavily on Madrid's financial resources, Saenz de Santamaria said she discussed other ways to support them in talks with US Treasury Secretary Timothy Geithner during a one-day trip to Washington, where she also met with the IMF chief Christine Lagarde.
“We were talking about the possibility that the banks, not only Spain's but also in other countries that need it, could access funds directly without intervention from the governments and without conditions,” she said after meeting Geithner.
“The treasury secretary indicated that we are working in the same direction and that we must find a solution for the banks.”
Pressure has been mounting to allow Spain's banks to tap the European Stability Mechanism, the region's financial firewall, directly for capital support to avoid forcing the entire country into a financial meltdown.
The European Commission said on Wednesday that the ESM should be considered for helping the Euro zone crisis-hit banks directly, instead of routing its funds through governments that are already saddled with huge debt loads.
“To sever the link between banks and the sovereigns, direct recapitalisation by the ESM might be envisaged,” the EU executive said.
But Germany and other EU conservatives have insisted that governments be responsible for any money borrowed from the ESM and its antecedent, the European Financial Stability Facility which is being phased out.
Saenz de Santamaria also met with Lagarde at IMF headquarters but both denied any talks on a bailout program for Spain.
“There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support,” Lagarde said after the two met on Thursday and following on reports from the Financial Times to that effect.
“The IMF is not drawing up plans that involve financial assistance for Spain. Nor has Spain requested financial support from the IMF,” spokesman Gerry Rice told journalists. The meeting between the Lagarde and Saenz de Santamaria was “to discuss recent economic developments in Spain and the eurozone,” he added.
Speculation has mounted that Spain will seek a Greece-style rescue loan from the IMF and the European Union (EU) as the country endures economic recession and its banks crumble under the weight of massive bad real-estate loans.
Earlier Thursday, the EU pressed Madrid to urgently clear up doubts over its mammoth rescue of stricken lender Bankia in a bid to calm markets.
On Thursday also Fitch Ratings downgraded eight regions of Spain warning that a failure from the government to adopt new measures would result in further ratings cuts.
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22 comments Feed
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you made your bed
now lay on it .
It puts BK's fixation with The Mad Bitch of Argentina into perspective eh? :o)
@1 I agree. Stuff 'em. When they're totally bankrupt we can buy the whole place for a quid!
How old are you?
I am 66. Beauty is in the eye of the beholder and directly proportional to the difference in ages! :o)
Ha ha ha, you bunch of twats are getting stuffed by The Mad Bitch of Argentina as I write.
The difference with the UK to you bunch on numbnuts is the national debt will be paid off in time and the rest of the world will still trade with us.
Who will trade with Argentina? Iran, N. Korea, The Chin (watch out for them) and oh, yes, Angola. That is such an edifying list of allies you have there.
BTW Soraya has her own face, not something from the Dunlop Rubber Co. like TMBA. LOL
WHY the insults
Are you jealous
Are you envious
Are you a bad loser
Are you??
Then stop the insults and listen to the truth,
.
7 excuse me your sweetness...those are not insults but descriptions aimed at reminding you you were but are not any more. that's the truth. enjoy your tea while you can pay for it.
insults and jealousy
Why are you so vitriolic to the Brits? Your mother ran off with one when you were young?
Firstly, I am not a dork AND I have retired to Uruguay.
I would not live in MVD if they paid me. It is no wonder that western visitors to Uruguay who only visit MVD think that Uruguay is a third world country.
I love Uruguay and the people here, I notice you are in Spain: I bet you are broke now then. Have a nice day. :o)
Good weather (no rain in summer), good food, magnificent museums and historical cities,great people, great beaches and a great country!!
As usual you are behind the curve.
The retired people from the UK are finding life very expensive in Spain and are 'coming home' in droves, if only they could sell their property for anything like what they paid for it - but they cannot.
You have obviously never bought property in Spain: the crooks are as bad in Spain as they are in Argentina.
By crooks I mean the local obragados and the mayors who have acted in concert to defraud 'foreigners'.
Literally hundreds of their victims are awaiting the legal process as I write for compensation for having been sold 'green belt' land for building on by these corrupt officials. They then have the government rase their new buildings to the ground through no fault of the buyers in most cases.
as Nick Rockefeller used to say:“KMA” , dork!
Very erudite, I don't think.
Who is Nick Rockefeller, he does not exist, does he? :o)
I never tell anyone where I live.
I earned my 'golden' retirement by working hard from the age of 14, delivering groceries, taking a Indentured Technical Apprenticeship to the age of 21 and becoming a Professional Engineer. I worked for several International Companies, attained the role of Technical Director in one of the divisions of the largest engineering based businesses in the world, and then ran my own companies until I retired.
You should try hard work yourself sometime, it may help you calm down and behave kindly to other people instead of goading them from the get go.
what an impressive biography but no thanks, no hard work for me, that's for dorks, slaves and 'trepas'. I don't acknowledge any merit to anybody on any grounds that's the only reason I'm going to rejoice when all this crumbles in the near future and all assets ( yours for instance ) get mercilessly sacked by 'you know who'. until then enjoy your ' mate con asados' you pale gaucho!
I did and I made the point in 16), before your 'advice'. ' I insist' you say.
I don't think you are Uruguayo, you sound more like an Argie troll. I bet you say 'I demand' as well?
You are a layabout then?
You learn, as you get old (I am 66) that no-one is ever free.
I thought I would be free of my often incompetent bosses when I started my first business: then I learnt that I had to satisfy my customers every whim if I wanted to stay in business.
Now I am retired my only boss is my wife. :o)
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