Brussels, 13/11/2012 (Agence Europe) - Eurozone finance ministers say that Spain is correctly implementing the strings attached to its bank bailout plan, for which some €100 billion has been earmarked by the eurozone. Spanish Economy Minister Luis de Guindos said upon his arrival at the ECOFIN Council on Tuesday 13 November that the plan was going according to schedule, and the head of Eurogroup, Jean-Claude Juncker, said on Monday night (12 November) that the bank programme was on track.
On Wednesday 28 November, the European Commission will be publishing its assessment of the restructuring plans for four nationalised Spanish banks (Bankia, Catalunya Caixa, Novagalicia and Banco de Valencia) which will considerably reduce their size. On 1 December, the Spanish “bad bank” will come on stream. Toxic assets will be transferred to it from all the Spanish banks that will receive cash from Europe. The first instalment of aid, of an unspecified amount, will be paid out in December by the European Stability Mechanism, the eurozone's bailout fund. Speaking at the European Parliament on Monday, de Guindos said the capital requirements would be between €35 and €40 billion, but this was only for a fifth of the Spanish banking industry (see EUROPE 10728).
The Commission is examining the measures taken by the Spanish government to meet its budget commitments, no mean feat given the country's struggling economy. De Guindos said budget consolidation had to continue at a “reasonable” pace. (MB/transl.fl)