BRUSSELS (MNI) – The European Commission on Thursday dampened
speculation that Spain could use any money left over from its E100
billion bank rescue package for other purposes.
“It is not foreseen to use the funding for the banks for other
purposes,” said spokesman for EU Economics and Monetary Affairs
Commissioner Olli Rehn said.
“The money made available for the restructuring, recapitalisation
and reform of the Spanish financial sector is made available quite
explicitly for those particular objectives,” he said.
Spain’s Eurozone partners agreed in July to earmark up to E100
billion to help Spain restore its troubled banking sector to health but
the sum agreed was intentionally made significantly greater than the
actual amount of aid expected to be required, which was estimated at the
time to be between E52 billion and E62 billion.
Media reports suggesting that Madrid was discussing the possibility
of using the left over money to help service its debts are “hypothetical
speculation,” the spokesman said.
“There is no automatic implication as to what could be done with
the balance remaining of that [E100 billion] sum,” he said. “Any
decisions on possible further programs would be looked at by the
Eurogroup, just as it would for any other member state. There is no
automatic link to be drawn between these two things.”
The actual amount of aid Spain will use should become clearer at
the end of September when a bank-by-bank stress test is completed.
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