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German Parliament will Support Financially the Spanish Bank
Posted On 19 Jul 2012
Eurozone
This morning, German Parliament, Bundestag, is ready to recapitalize the Spanish Bank with European funds. Germany will give a loan of 100,000 million euros to be granted through the European Financial Stability Fund (EFSF).
This aid is going to be paid with the condition that the banks that were in trouble, must be restructured.
Wolfgang Schäuble, Germany’s finance minister pressured lawmakers to display solidarity with the country, pointing out that Spain is not the only one at risk, but all the Eurozone.
“The mere appearance of the solvency of Spain is at risk, and could lead to a significant contagion effect in the Eurozone”, said Schäuble.
He also assured that the Spanish State is liable for the obligations of support for its beleaguered banking.
(BG)
