Spain doesn’t need bailout: IMF

Spain does not need a rescue loan from the International Monetary Fund, IMF chief Christine Lagarde said Thursday as worries over the country’s finances continued to spook investors.

“There is no such need at the moment as I understand,” she told Bloomberg Television.

She said Madrid was taking “really serious measures” on reforming the country’s labor market and reducing its fiscal shortfalls.

“They are determined to take control of the provinces’ budgets, which was an issue, and they have announced that they want to strengthen the Spanish bank capital.”

She also said that the $1 trillion emergency “firewall” fund Europe is putting together is also a crucial tool to help prevent market contagion from undermining Spain and the eurozone.

“I hope that through the combined efforts that the Europeans will be able to support the efforts undertaken by the Spanish government.”

The IMF has already joined the European Union in massive bailouts of Greece, Portugal and Ireland, all much smaller economies than Spain’s.

If there is a need for a rescue program, she said, “the IMF has to be there for all members — if there is appropriate burden sharing and proper risk mitigation.”