Spain says no need for rescue, claims international support
Spain rejected any need for a full-blown bailout and claimed international support on Wednesday as its borrowing costs hovered dangerously near euro-era records.business Updated: Jun 20, 2012 21:21 IST
Spain rejected any need for a full-blown bailout and claimed international support on Wednesday as its borrowing costs hovered dangerously near euro-era records.
Fears mounted among investors that exorbitant market rates could eventually force the euro zone's fourth-largest economy to seek an international rescue like Greece, Ireland and Portugal before it.
"Spain has not been rescued because it does need to be rescued. Spain has the support of its European partners and European institutions," budget minister Cristobal Montoro told parliament.
Spain's euro zone partners agreed on June 9 to extend a loan of up to 100 billion euros ($125 billion) to salvage distressed banks, laden with bad loans extended during a real estate bubble that imploded in 2008.
Prime Minister Mariano Rajoy's conservative government refuses, however, to describe this aid as a rescue or bailout. "A week ago, Spain was not rescued," Montoro said.
The minister hailed G20 summit in Los Cabos, Mexico, where leaders issued a statement saying they welcomed both Spain's plan to recapitalise the banks and the euro zone's loan.