On Saturday June 9, 2012 the Government of Spain has announced its intention to
Apply for European financing for the recapitalization of your banking entities
The Eurogroup has affirmed its willingness to respond favorably to that request
with a loan large enough to meet the needs of
estimated capital, with a significant additional margin, for an amount of up to
100,000 million euros, which will be contributed by FEEF / MEDE.
In line with the conclusions collected in its “Financial System Stability
Assessment ”on Spain, recently published, the IMF celebrates the
commitment of Europe and Spain and has indicated that it is willing to support the
implementation and monitoring of this financial assistance.
The Fund for Orderly Bank Restructuring (FROB) will receive these funds
Europeans in more favorable financial conditions than those currently
offers the capital market. The FROB will use these funds to recapitalize
Spanish financial institutions, respecting the European regulations on aid
of State. The Kingdom of Spain will be responsible for the financial aid received.
This financial assistance will not only not worsen the conditions of the Debt
Public already in circulation: it will also strengthen its solvency. Furthermore, a system
safe and adequately capitalized bank will reduce contingent liabilities
future of the State and will strengthen the sustainability of Spanish debt.
The € 100 billion limit guarantees credible support and more than
enough to cover the possible needs of the system, even in the
hypothetical more adverse scenarios including also an additional mattress.
The agreement will only include the necessary conditionality in relation to the
regulation of the financial sector, and will not impose any additional obligation in
fiscal consolidation and structural reforms, beyond
commitments currently in force.
Details about the financial assistance package will be established in
coordination with our European partners, and will be communicated to the market in
time and form.
In this context, the Public Treasury reaffirms its commitment to
capital markets, and therefore will continue to execute its
financing program, following its regular auction calendar.
The Government of Spain maintains its commitment to the
fiscal consolidation and structural reforms, a program with which Spain
It has earned the trust of its European partners.

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