|Mallet, Victor, Spiegel, Peter
It was announced on the 9 June 2012 that Spain was to seek EU aid to rescue its struggling financial sector, in a bailout that would impose no new economic reform conditions on Madrid other than existing EU budget rules.
After months of denials by Spanish leaders that the country needed a bailout, it fell to Luis de Guindos, the economy minister, to declare in Madrid 'the government of Spain declares its intention to request European financing' for its banking system.
The decision to seek aid was reached less than 24 hours after the IMF issued a 77-page report on the Spanish banking sector that found it was suffering through a crisis 'unprecedented in its modern history'.
The core of Spain’s financial sector is well managed and appears resilient to further shocks, but important vulnerabilities remain in the system, the International Monetary Fund (IMF) said in its Financial Sector Assessment Program (FSAP) review of Spain, published on the 7 June 2012.
|Economic and Financial Affairs
|Countries / Regions