Brussels, 16/07/2012 (Agence Europe) - On Monday 16 July 2012, the European Commission said that the draft Spanish memorandum does not plan for any contribution from senior bond-holders, but rather from junior bond-holders and shareholders, as Simon O'Connor, a spokesman for European and Monetary Affairs Commissioner Olli Rehn explained.
The Wall Street Journal said on Monday 16 July that the head of the European Central Bank, Mario Draghi, said at the Eurogroup meeting on 9 July that he wants holders of “senior” debt in struggling Spanish banks to take a writedown, which is the opposite of what was decided for Ireland. Eurozone finance ministers did not give unanimous support to this idea, fearing adverse reaction from the markets. The Commission added that the stress tests on the Spanish banks should be awaited before deciding on private sector involvement in the Spanish aid programme. The ECB refused on Monday to comment, saying it was a decision for the eurozone. (EL/transl.fl)