European ministers grant loan to Spain

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2012-06-10

Spain will receive $125 billion to protect its failing banks.

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Following a heated discussion, ministers of 17 Eurozone countries decided on Saturday to offer the loan.

The Eurozone finance ministers had been at loggerheads over conditions of the loan but finally decided to grant it unconditionally.

Spain's government had asked for the help in order to recapitalize its banks which are being snowed under by the rising costs of borrowing.

Greece, Ireland and Portugal have received similar loans.

Following the meeting German Finance Minister Wolfgang Schaeuble said the granting of the loan had shown European solidarity.

He said Spain had done the right thing in requesting the extra injection of capital.

The US Treasury Secretary Timothy Geithner also welcomed the deal.

source: Spain News.Net

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