Skip to comments.Eurozone agrees to lend Spain up to €100 billion ($125 billion)
Posted on 06/09/2012 12:50:03 PM PDT by Olog-hai
Eurozone finance ministers agreed on Saturday to lend Spain up to 100 billion ($125 billion) to shore up its teetering banks, and Madrid said it would specify precisely how much it needs once independent audits report in just over a week.
After a 2½-hour conference call of the 17 finance ministers, which several sources described as heated, the Eurogroup and Madrid said the amount of the bailout would be sufficiently large to banish any doubts.
"The loan amount must cover estimated capital requirements with an additional safety margin, estimated as summing up to 100 billion in total," a Eurogroup statement said.
Spain said it wanted aid for its banks, but would not specify the precise amount until two independent consultanciesOliver Wyman and Roland Bergerdeliver their assessment of the banking sector's capital needs some time before June 21.
"The Spanish government declares its intention to request European financing for the recapitalization of the Spanish banks that need it," Economy Minister Luis de Guindos told a news conference in Madrid.
He said the amounts needed would be manageable, and that the funds requested would amply cover any needs.
A bailout for Spain's banks, beset by bad debts since a property bubble burst, would make it the fourth country to seek assistance since Europe's debt crisis began. With the rescue of Greece, Ireland, Portugal and now Spain, the EU and IMF have now committed around 500 billion ($625 billion) to finance European bailouts.
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You don’t lend poor people money, you give it to them. They’ll never see a dime of that back.
Spain is still screwed anyway. They’re just kicking the can. I believe it’s current unemployment is over 20%.
Next up Italy? Portugal?
They will make sure they see something back. The price that was always demanded was that of national sovereigntywhich, frankly, was given up pretty much when the peseta was eschewed for the euro. The fanatical EU elites want everything centralized into a giant, unwieldy central government . . .
Cyprus is most likely next.
What’s the old definition of insanity? When you try the same thing over and over expecting a different result.
If only the “right people” had of instituted Spain’s “Green Jobs” initiative, they’d be hunky dory.
This “loan” is really being financed largely by the frightened Germans. Basically it is another futile financial gimmick. The capital squandered by three generations of deficit spending cannot be easily replaced. Greece was the opening act. Now comes Spain, later Italy and France. The Germans ought to realize that they simply do not have the wealth to stave off European bankruptcy. Their efforts will not be enough or even appreciated. They will ultimately be blamed in the end. Best course is to forget about bailouts, let bankruptcy and rock bottom occur, use aid as charity, and let the true rational recovery and rebuilding begin.
That’s not what the German elites are worried about. They along with the other EU elites are quite fanatical about this “ever closer union” thing. This is why the loans haven’t stopped since 2008, and they aren’t worried about the opinion of the common German in this.
Option One is going to happen, because too many Pols would lose their jobs if they allowed Option Two.
So they will keep printing until they just can’t print, anymore.
WIEMAR GERMANY, ANYONE?
@ Post 9
You are exactly right with one caveat. The real tragedy is that future generations will owe the banksters the money we are spending today to protect the profits of these same banksters.
The generational theft practiced by Western governments today is immoral, illegal (by our constitution), and unethical. It’s frightening how few people even bother to notice what is happening in the open. It’s outrageous that much of this borrowing is not done to make the world better, it’s simply done to preserve the profits for the very same banksters/politicians that rigged the game in the first place.
You and I feel the pain. They get their bonuses and party on.
“This loan is really being financed largely by the frightened Germans.”
Incorrect, it’s largely going to be financed by YOU, through the Fed, the IMF, higher gas prices, and more soaring inflation.
WHAT? You didn’t think the Messiah was going to allow Europt to collapse before Election Day, did you? What did you think the FAIL SPEECH was about? More Bailouts, more “Stimulus” for his cronies.
I’ve been calling this one for months. I HATE always being right about this crap. But if you pay enough attention, it should have been obvious to anyone with a brain what was going to happen.
That ought to carry them through the month.
So, of course they didn't.
The EU’s about radical “solutions” rather than sensible decisions. If their solution is to disestablish national governments and replace them with one central government, that’s the goal they’ll work towards, even via blackmail and loansharking. Remember also that they go by the social market economy rather than a free market (which they call the “Anglo-Saxon economic model”) . . . way different rules.
I wouldn’t be surprised to learn WE gave them billions to Spain. obama thinks he owns the country and can do anything he wants. And so far, he’s been right.
More TWIST, more ZIRP, more QE (only they will callit something else), and the biggest holder of Spanish Debt becomes the IMF (60% of it funded by the US Treasury)
Lend money to a country that borrowed and squandered its way to bankruptcy? These people are going to ruin the reputation of the word “stupid.”