August 6, 2012 3 Comments
As speculation continues to surround the possibility of Spain requesting a full bailout from Europe, the struggling country has given no indication that any decision has been taken.
In an interview on Sunday Spain’s finance minister, Luis de Guindos, said Spain was “in no rush” to request further assistance from Europe and is safe to hold out until more details emerge about a possible European assistance program.
“When we know the details [of the aid program], we’ll have a more precise calendar,” said Sr. de Guindos.
Spanish Prime Minister Mariano Rajoy last week ‘opened the door’ to officially requesting a bailout from the euro-zone fund to help Spain out of the worst financial crisis it has seen.
Last week ECB President Mario Draghi increased the pressure on Spain when he said the ECB was ready to buy government-bonds if a government requests it as a means of support, under strict conditions. This was a mile away from his comments the previous week when he said the ECB was ready to do “whatever it takes” to save the Euro.
This is a u-turn for Mariano Rajoy’s government who have said, until recently, that they will not need a full sovereign bailout, and that the bank funding would be the only help requested, in the hope that the ECB would buy Spanish debt.
However, over recent days the government have had to concede that without intervention from the ECB the government could be left with no choice but to ask for aid.