Saturday, June 9, 2012

Eurozone Mulls Spain Bank Bailout Amid IMF Fears

The 17 eurozone finance ministers are to discuss a bailout for Spain - just hours after the International Monetary Fund said its ailing banks need at least 40bn euro.

The IMF said Spain needs the capital injection after it performed a stress test on the country's financial sector, assessing it as well managed but vulnerable.

It recommended banks raise capital beyond the 40bn euro (£32bn) to properly restructure the troubled banks, but rating agency Fitch, which downgraded Spanish debt this week, said closer to 100bn euro (£81bn) is needed to keep the economy afloat. Read More