Saturday, June 2, 2012

Britons face £5bn bill to help out Spanish as fears grow that Madrid will have to ask IMF for €300billion bailout

Remember 2010?

British taxpayers could be forced to stump up another £5billion to rescue Spain as the crisis in the eurozone spirals out of control.

Fears are mounting that Madrid will have to ask for an emergency bailout of up to £300billion as it struggles to prop up its basket-case banks.

A third of that money could come from the International Monetary Fund – including around £5billion from the UK, even though Britain is not in the eurozone.

UK taxpayers have already coughed up £12.5billion to rescue debt-ridden Greece, Ireland and Portugal.

Spain’s deputy prime minister Soraya Saenz de Santamaria has held crunch talks in Washington with IMF chief Christine Lagarde and US Treasury Secretary Timothy Geithner.

But the IMF denied reports that it has started to plan a bailout for Spain, while the country’s finance minister insisted it was stable.

‘The IMF is not drawing up plans that involve financial assistance for Spain, nor has Spain requested any financial support from the IMF,’ said the fund’s spokesman Gerry Rice. Read More