Spain drafts EUR 100 billion rescue plan

14th October 2008, Comments 0 comments

The Spanish government outlines a plan to guarantee EUR 100B of bank debt.

14 October 2008

MADRID -- The Spanish government Monday outlined plans for a EUR 100 billion guarantee to help the country's banks in the current financial crisis.

The cabinet approved guarantees for loans among the country's banks up to 31 December, 2009.

Prime Minister Jose Luis Rodriguez Zapatero, after the special session of his cabinet, said the goal is to ensure that banks can access easily transferable cash.

The Socialist government is also still considering buying shares in banks, Zapatero said, while adding: "This is currently not necessary".

He said that Spanish credit institutions were more stable due to strict controls.

Earlier in October, the Madrid government approved a fund of up to EUR 50 billion to provide money to banks in buying up assets.

Zapatero is to meet opposition leader Mariano Rajoy on Tuesday to discuss the government's financial rescue package.

[Dpa / Expatica]

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