Spain is to get up to 100 billion in loans from eurozone funds to try to help shore up its ailing banks after finally succumbing to the inevitable and asking for a bailout.
Spain’s Economy Minister Luis de Guindos said the help would be for the financial system, not the economy as a whole. He added that the loans would come with conditions for the banks receiving them, such as restructuring.
The Spanish government had been reluctant to ask for a bailout like the one given to Greece, Ireland and Portugal, as this rescue packages came with demands for tax rises and spending cuts. Spain had already begun implementing austerity measures but had been hoping, albeit in vain, to avoid the stigma associated with a ‘bailout’.