Lagarde expressed “deep satisfaction” at the announcement of aid to Spanish banks
The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, expressed his “deep satisfaction” at the announcement of the Eurogroup to support bank recapitalization in Spain, that “crucial” to succeed.
“I would like to express my deep satisfaction at the announcement by members of the Eurogroup, which complements the measures taken by the Spanish authorities in recent weeks to strengthen the country’s banking system,” Lagarde said in a statement the IMF.
The managing director today participated in the videoconference of the Eurogroup in which Spain agreed to grant a loan of up to 100,000 million euros to clean up the Spanish financial sector.
“This amount is consistent with the capital needs that were identified in the Programme of Financial Sector Assessment Program (FSAP) of the IMF and gives assurances that the Spanish banking system will have the funding needed,” said Lagarde.
The director of the international organization said that “creating a credible support mechanism to recapitalize the most vulnerable segments of the banking system was one of the main recommendations of the IMF FSAP recently evaluated to Spain.”
The Fund yesterday released its initial assessment of the needs of the financial sector in Spain, where weak institutions need to increase their capital reserves “at around 40,000 million euros,” but said it could be more.
Finally, Lagarde said the IMF “is prepared to respond to the invitation of the Eurogroup members to support the implementation and monitoring of this financial support through periodic reports.”
The Minister of Economy of Spain, Luis de Guindos, explained that the role of the International Monetary Fund (IMF) in the European rescue of the Spanish banks will be “strictly advisory” and not provide funding.