Eurozone ministers 'to discuss Spain bank bailout'
Published: 9th Jun 2012 04:35:14
Eurozone finance ministers are to hold a conference call to discuss a bailout for Spanish banks, the BBC understands.
EU sources say Madrid could formally request financial assistance for its troubled banks this weekend.
So far Spain has denied reports that an announcement on a European rescue plan for its banks is close.
The International Monetary Fund (IMF) is estimating that Spain's banks need a cash injection of at least 40bn euros ($50bn; £32bn).
The IMF said on Friday that a "stress test" showed Spain's financial sector was well managed but "vulnerable".
EU authorities earlier played down reports that Spain would ask for help as early as Saturday.
But in an interview on Portuguese radio, European Central Bank Vice President Vitor Constancio said the call for assistance was expected soon.
"It is expected that Spain will formulate a request for aid exclusively for banks recapitalisation," he said.
"There has to be an expression of will to have such a programme for Spanish banks, and one may hope it happens rather swiftly."
The BBC's Tom Burridge in Madrid says Spain is under pressure from Brussels to act, possibly before the feared uncertainty that could follow next weekend's Greek elections.
Spanish Prime Minister Prime Minister Mariano Rajoy has insisted that any decision will come after the results of an independent audit on the Spanish banking system, which are due out within two weeks.
The audit will produce a figure of how much money, in total, is needed to prop-up Spain's banks.
A rescue deal would see money passed first to the Spanish government and then to the troubled banks.
Because Madrid has already announced tough financial reforms it is likely that a deal would only carry limited conditions, our correspondent says, unlike the full-blown bailouts for Greece, Portugal and Ireland.
Reuters reported that eurozone deputy finance ministers would first hold a conference call on Saturday morning to discuss a Spanish request for aid.
President Obama says he doesn't want to scold, but his comments on Friday certainly sounded like a stern lecture.
It is clear now that the US presidential election will take place against a poor economic background which may get worse before November. Mr Obama is telling the American people it is Europe's fault.
There is genuine frustration that Europe's leaders never get the message.
Mr Obama's view is that what is needed is firm action to save the banks and that it should be done as a piece of political theatre that shocks confidence back into the markets.
The Eurogroup of finance ministers would then discuss the issue on another conference call, the news agency said, citing unnamed EU and German officials.
A downgrade of Spain's creditworthiness by rating agency Fitch earlier this week has been seen by some as adding to the urgency of shoring up Spain's finances.
European leaders have to make difficult decisions to steer the eurozone away from crisis, US President Obama said on Friday.
He said the US would support Europe as it implemented the hard solutions needed to solve the ongoing debt crisis.
He said a deep new recession in Europe would have an impact on the US economy.
Greece's future in the eurozone was a matter for the Greek people, he said, but "further hardship" must be expected if the country chose to leave the euro.
Greeks will go to the polls on 17 June to try and end a political impasse that eurozone leaders say is harming Greece's ability to tackle its economic crisis.
At 06:58:11 in Northern IrelandSecretary of State Theresa Villiers will meet the new Irish Foreign Affairs Minister Charlie Flanagan later on Wednesday.
At 06:39:01 in Northern IrelandPlans for a huge new cemetery beside the south Antrim village of Dundrod are meeting strong opposition from a group of residents.
At 06:28:03 in WorldAt least 21 people were killed when their bus swerved off a mountain road and fell into a gorge in the northern Indian state of Himachal Pradesh.
At 06:14:50 in EnglandMore than 50% of customers of telecom company JT said they were not satisfied with the home phone service they receive, a survey has found.
At 06:14:23 in EnglandA collection of more than 200 hidden photographs that chronicle the building of Cambridge University Library are to go on public display.
At 06:10:31 in EnglandPlans to build 750 homes on land owned by artist Damien Hirst in north Devon are to be considered by councillors.
At 06:07:30 in EnglandLeftover ash from Plymouth's new waste-to-energy incinerator is to be shipped to the Netherlands for recycling.
At 06:04:29 in EnglandA 'Shed of the Year' finalist who lets his garden shed out to holidaymakers has been told to remove it because it does not have planning permission.
At 05:55:07 in TechnologyThe UK government will shortly outline measures to permit driverless cars to use public roads by next year.
At 05:48:58 in HeadlinesSuggestions that the deadly virus Ebola could reach British shores lead to front-page headlines.
Harvard CitationBBC News, 2012. Eurozone ministers 'to discuss Spain bank bailout' [Online] (Updated 9th Jun 2012)
Available at: http://www.ukwirednews.com/news/1433589/Eurozone-ministers-to-discuss-Spain-bank-bailout [Accessed 30th Jul 2014]
News In Other Categories
Demands for search engines to remove personal data from the web to respect people's "right to be forgotten" are unreasonable, a group of peers says.
More than 50% of customers of telecom company JT said they were not satisfied with the home phone service they receive, a survey has found.
A libel case brought by a Conservative assembly member has been adjourned and is unlikely to resume until next year.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
The UK government will shortly outline measures to permit driverless cars to use public roads by next year.
Felix Klieser was born with no arms, so uses his feet to do most things. This includes eating, dressing, writing ... and being a professional French horn player.