Eurozone Will Provide First Draft of Political Agreement on Loan to Spain

Eurozone will provide first draft of political agreement on loan to Spain

Finance ministers from the Eurozone reported that tomorrow will close a “political agreement” on terms and conditions on the loan of 100,000 million euros that will be asked Spain to recapitalize its banks.

The memorandum of understanding was drafted by European Commission experts and the technicians of the European Banking Authority (EBA), European Central Bank (ECB) and International Monetary Fund (IMF). The memorandum will not be finalized and signed until the end of month yet its draft will be delivered tomorrow to the Eurogroup.

This will determine negotiated loan terms and conditions to be imposed on individual institutions and the industry as a whole. Nor will collect a final figure of financial aid to Spain, but referred to the peak of 100,000 million euros until it is known the outcome of the evaluation of loan portfolios of banks, that the government commissioned four auditors at the end of this month.

(BG)