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MADRID, June 9 -- Spain will ask eurozone partners for financialhelp to support its banking sector, Economy Minister Luis DeGuindos told a press conference here on Saturday. According to the latest report, the Eurogroup will give Spain abailout up to 100 billion euros (about 125 billion U.S. dollars). The Spanish minister insisted that those money are not a bailout,but a loan with favorable conditions for the banks. However, allmedia have labeled this loan as 'bailout'. This 100 billion euros of loan, as the minister says, will be givento the Fund for Orderly Bank Restructuring (FOBR), which at thesame time will provide this funds to those entities needing them. De Guindos pointed out that this money is to cover recapitalizationneeds. It will also allow the banks to have a security margin. He added that conditions will be applied only to the banking andfinancial system. There will not be new budget cuts. In this way, the Eurogroup agreed Saturday to accept the requestmade by Spain for the financial support for its banks. The decision was taken during a three-hour call conference.Christine Lagarde, managing director of the International MonetaryFund (IMF) also participated in the call conference. The IMF willbe in charge of supervising the financial aid plan. De Guindos highlighted during the press conference that "it is aloan with a very favorable conditions, better than marketconditions" and it will be useful for restructuring banks withdifficulties. De Guindos described this aid as a "financial" support and avoidusing the word "bailout", saying that this has nothing to do withit. He assured that the amount of money is "high enough" in orderto cover capital needs of Spain's banks. He explained that the use Spain will do with these European fundsdepends on the results provided by the external audits. He also specified that this loan from the European Union (EU) wasan advantage because credit conditions are "very favorable", takinginto account the current situation in the market, where theinterest rate is above 6 percent regarding bonds of 10-yearlifespan and 5 percent for bonds of two-years lifespan. He also said the IMF considers that 70 percent of the Spanishbanking system is totally solid and the organism will have a veryimportant role, as it will be in charge of supervising this newmeasure for the Spanish banking system. Finally, the minister clarified that conditions will be imposed tothe banks and there will not be negative consequences for theSpanish society. Banks will suffer less pressure, he said. I am an expert from led-spotlightbulbs.com, while we provides the quality product, such as Led Tube Light Bulbs Manufacturer , China LED Panels Lighting, Led Tube Light Bulbs,and more.
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