Saturday, June 9, 2012

Spain conference call between eurozone finance ministers june 9 2012

Spain conference call between eurozone finance ministers june 9 2012 : Spain looks set to use a conference call between eurozone finance ministers to ask for a €100billion (£81billion) bailout for its struggling banking sector.Ministers from across the shared currency nations on Saturday afternoon embarked on a conference call to outline a rescue deal, as a formal request by the eurozone's fourth biggest economy appeared imminent.

Fellow euro nations are expected to demand that Spain carries out reforms in its financial sector in exchange for a rescue of its stricken lenders.

‎The euro zone's senior finance minister urged a rapid resolution of Spain's debt crisis on Saturday before a meeting where he will lead discussions on a bailout of the country's teetering banks.

Juncker's spokesman said the finance ministers would hold a conference call at 4 p.m. Brussels time (1400 GMT).

Asked if he expected Spain to request help, Swedish Prime Minister Fredrik Reinfeldt told public service radio: "I think that is everybody's assessment. There is even talk about amounts up to 80 billion euros."

It is not clear whether bailout numbers will be finalised on Saturday but the International Monetary Fund gave a clear guide to what it thought was needed, saying that under a stress scenario a number of Spanish banks would need to increase capital by 40 billion euros ($50 billion) in total. It advised seeking significantly more than that.

The Swedish prime minister signalled the package would be in that region. "There was a question of more than €80bn," Fredrik Reinfeldt said in a radio interview. "It is in fact a question of one of the biggest financial rescues in recent history."

Spain has come under pressure from the European Central Bank, Germany and Netherlands to move before Greek elections on 17 June, amid fears that political chaos in Greece and the weakness of Spanish banks could threaten the euro's financial stability.

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