Wednesday 25 April 2018

Paul Taylor: Spain's debt-stricken banks get thier bail-out but the respite may only be shortlived for Madrid and the euro

EURO zone finance ministers rushed Spain into an EU-funded rescue for its debt-stricken banks to pre-empt the threat of a bank run if Greece's debt crisis flares again but any respite for Madrid and the euro may be short-lived.





After weeks of insisting that Spain needed no assistance to recapitalise lenders crippled by bad debts from a burst real estate bubble, Prime Minister Mariano Rajoy was pushed into requesting an aid package for fear of worse disaster to come, European officials involved in the negotiations said.



The 17-nation currency area agreed to lend Madrid up to 100 billion euros ($125 billion) for its bank rescue fund, more than an initial audit suggests it is likely to need, in an attempt to reassure investors and erect a new firewall in the crisis.

Please sign in or register with Independent.ie for free access to Opinions.

Sign In

Today's news headlines, directly to your inbox every morning.

Don't Miss