A few days ago Spain was purportedly going to need another €30 billion to €70 billion to recapitalize Spanish banks. I suggested the amount would be at least triple that and it did not take long to do so.
Yahoo! Finance reports Spanish bailout could reach 100 billion euros
A bailout for Spain's teetering banks, once requested by Madrid, could amount to as much as 100 billion euros, two senior EU sources told Reuters on Saturday.
By Marc Chandler:Greece has been the model for Portuguese and Irish aid. This may or may not have been fair and appropriate. After all, the nature of the Portuguese and Irish problems were dissimilar from Greece and each other. Spain's is more like Ireland's. The key differences include Spain's size, officials have progressed on a learning curve, and the now perceived greater vulnerability of the whole EMU project.
After months of denials, a short Eurogroup Statement shows Spain will submit a formal request to Brussels for a bailout. Here is the statement in full.
The Eurogroup supports the efforts of the Spanish authorities to resolutely
address the restructuring of its financial sector and it welcomes their intention
to seek financial assistance from euro area Member States to this effect.
Spain's struggling banks will receive as much as €100 billion ($123 billion) in emergency loans from European governments under terms of a tentative deal reached early Tuesday by euro zone leaders.
The first €30 billion, which will come from the euro zone's rescue fund, could be dispensed by the end of the month, the Financial Times reported.
Euro zone leaders decided to recapitalize the banks directly to keep from expanding the Spanish government's balance sheet.
MADRID/BRUSSELS (Reuters) - Spain formally requested euro zone rescue loans to recapitalize its debt-laden banks on Monday as the euro and shares fell on investor skepticism about this week's EU summit. Spanish Economy Minister Luis de Guindos asked for up to 100 billion euros ($125 billion) in a letter to Eurogroup chairman Jean-Claude Juncker, saying the final amount of financial assistance would be set at a later stage. ...