Spain's Zapatero slams 'unfounded rumours' of financial collapse

17th June 2010, Comments 0 comments

Spanish Prime Minister Jose Luis Rodriguez Zapatero on Thursday slammed what he called "all these unfounded rumours," referring to reports Madrid was preparing a request for bailout aid or that its banks were insolvent.

"There is nothing better than transparency to demonstrate solvency to give confidence and to leave behind us all these unfounded rumours," Zapatero said after highlighting a decision by all 27 EU leaders to follow the Bank of Spain's lead by making public stress tests on "all our finiancial institutions."

Zapatero, whose government has already denied persistent reports it would call on a trillion-dollar rescue fund of loans and guarantees set up by mainly eurozone partners in conjunction with the International Monetary Fund.

IMF chief Dominque Strauss-Kahn will visit Zapatero in Madrid on Friday.

© 2010 AFP

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