IMF welcomes Spain's bank moves

11th May 2012, Comments 0 comments

The International Monetary Fund on Friday welcomed the Spanish government's move to nationalize the country's fourth-largest bank and limit the impact of bad housing investments.

Spain announced Friday drastic reforms forcing banks to set up a new 30-billion-euro ($39 billion) financial cushion and to remove risky property assets from their accounts.

"I strongly welcome the comprehensive set of measures announced today by the Spanish authorities," said IMF managing director Christine Lagarde.

Prime Minister Mariano Rajoy's government took the sweeping action just two days after it nationalized the fourth-biggest bank, Bankia, to salvage a balance sheet dripping in red ink.

"The full implementation of these measures will help bolster confidence and support the economy's return to growth," said Lagarde.

© 2012 AFP

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