... Germany’s finance minister, Wolfgang Schäuble, praised the reforms undertaken thus far by Spain, calling the teleconference “constructive” and saying in a statement that “Spain is on the right path and Germany, just like the other countries and institutions of the euro zone, as well as probably the I.M.F., will support Spain on that way.”
The money will be channeled through the Spanish bank-bailout fund but the Spanish government will ultimately be responsible and will have to sign the memorandum of understanding and the conditions that come with it.
Mr. de Guindos said that the terms of the emergency loan would be “very favorable” but only set in coming days. He noted that “not all the financial institutions need capital,” adding that “the problem that we face affects about 30 percent of the Spanish banking system.”
Robert Tornabell, banking professor at the Esade business school in Barcelona, said that despite the government’s insistence to the contrary “what has just been agreed is in fact a bailout, just like what had to be done for Ireland because of its banking problems.”
Spain’s rescue request would “clearly hurt” the credibility of the government of Mr. Rajoy, as well as that of the Bank of Spain, following their repeated claims that Spain would not require European emergency funding in order to keep its banking sector afloat. Still, Mr. Tornabell said, “this is good news for our banking system, as is the fact that the euro group is not imposing such strict conditions and seems willing to offer Spain an interest rate well below that of the market.”...
/... http://www.nytimes.com/2012/06/10/business/global/spain-moves-closer-to-bailout-of-banks.html?pagewanted=2&_r=1#h[]
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