adminFacing parliamentary questions over the loan of up US$125 billion to salvage the banks, Economy Minister Luis de Guindos denied it imposed new conditions beyond the financial sector.
Loan conditions would be specific to the banking sector with no requirement for a broader austerity programme, he told parliament.
“I insist there are no supplementary conditions on budget policy, nor structural reforms,” he said.
There would be no new recommendations beyond those made by the European Commission on May 30 as part of its monitoring of Spain for exceeding agreed public deficit limits, the minister said.
European Union economic and finance chiefs would decide on those recommendations “soon”, he said.
Prime Minister Mariano Rajoy stressed that banks would have to repay the money.
“It is a credit for the banking system that the banking system itself will have to pay, and we should celebrate the fact that our European partners have helped us,” he told parliament. — AFP.
Online Reporter