Spain became the fourth euro member to seek a bailout since the start of the region’s debt crisis more than two years ago with a request for as much as 100 billion euros ($125 billion) to rescue its banks.
Prime Minister Mariano Rajoy, who as recently as May 28 said he wouldn’t seek a bailout, characterized the deal as a credit line for banks and an endorsement of his policies. He spoke to reporters today in Madrid before flying to Gdansk, Poland, for a soccer match between the national team and Italy.
Rajoy told reporters it wouldn’t affect the deficit and said Spain pushed for the 100 billion-euro ceiling on the credit line as a buffer to restore market confidence. He stuck to his plans to travel to the European soccer championships in Poland, “now that the situation is resolved.”
Spain’s bank rescue fund will only inject the EU funds into lenders that need it, and de Guindos said many banks won’t require cash as difficulties are concentrated in about 30 percent of the industry. Lenders receiving aid will be subject to conditions, de Guindos said, without giving details. The government won’t be forced to take additional measures on the budget or economy.