Loan to Spanish Banks may be Suspended by the Eurogroup

Eurogroup may Suspend Loan to Spanish Banks

Spanish banks could lose the loan that the Eurozone has provided them, if they were to fail on their commitments to the excessive deficit procedure.

Community sources recalled that this loan does not mean “no additional conditionality” macro. They also underlined that monitor compliance with the Stability and Growth Pact and the package of economic governance.

The conditions for the loan will be reviewed regularly by the countries providing the aid. The European Commission, along the European Central Bank (ECB) and International Monetary Fund (IMF) assess compliance with the conditions limited the financial sector. If the conditions are not fulfille, they can suspend it.

(BG)