The Minister for the Economy and Competitiveness, Luis de Guindos, today sent the President of the Eurogroup, Jean-Claude Juncker, the letter requesting, on behalf of the Government of Spain, financial assistance for the recapitalization of the financial entities that so request. require. The full text is as follows:
"I have the honor to address you on behalf of the Government of Spain, to formally request financial assistance for the recapitalization of Spanish financial entities that require it. This financial assistance is framed within the terms of the financial aid for the recapitalization of financial institutions. The choice of the specific instrument in which this aid will materialize will take into consideration the different possibilities available today and those that may be decided in the future.
The Government of Spain highly appreciates the declaration of the Ministers of the Eurogroup on June 9, which supports the determination of the Spanish authorities to restructure the financial system and their intention to request financial assistance for the recapitalization of financial institutions, for an amount sufficient to cover capital needs plus an additional safety margin, up to a maximum of one hundred billion euros.
The Fund for Orderly Bank Restructuring (FROB), which will act on behalf of the Government of Spain, will be the receiving institution of the funds that will be channeled to financial entities.
The Spanish authorities will offer their full support in evaluating the eligibility criteria, defining financial conditionality, monitoring the measures to be implemented and defining financial aid contracts, with the aim of finalizing the "Memorandum of Understanding" before July 9 so that it can be discussed in the next Eurogroup. In this sense, the two valuation exercises of the Spanish financial system that have just been carried out by the two independent experts, as well as the FSAP analysis of the International Monetary Fund, should be taken into account as a starting point. ”