Tags: IMF | spain | aid | talks

IMF Spokesman Denies Talks on Financial Aid for Spain

Thursday, 31 May 2012 01:49 PM

The International Monetary Fund is not in talks with Spain on possible financial assistance and annual economic consultations between the IMF and Spanish authorities will take place from June 4, an IMF spokesman said on Thursday.

Spokesman Gerry Rice told a news briefing that IMF Managing Director Christine Lagarde will meet Spain's Deputy Prime Minister Soraya Saenz de Santamaria for talks on economic developments later on Thursday.

The debt crisis has escalated in recent weeks with the possibility that Greece, facing a critical general election on June 17, could exit the eurozone and worries increase over the need to recapitalize troubled Spanish banks.

"The IMF is not drawing up plans that involve financial assistance for Spain nor has Spain requested any financial support from the IMF," Rice told reporters, declining to comment on recent statements by the European Commission about shoring up Spain's troubled Spanish banks.

The European Commission's top economic official Olli Rehn warned on Thursday the single currency area could disintegrate without a stronger crisis fighting mechanism.

Rice said the IMF had long been talking up the need for strengthened crisis management tools and a clearer, stronger vision on the overall architecture of the eurozone.

"Stronger risk sharing mechanisms would be desirable and financial integration would be bolstered by unified supervision, a single bank resolution authority and a single deposit insurance fund," Rice added.

"Clearly the crisis in Europe continues to have an urgent aspect," he said.

© 2021 Thomson/Reuters. All rights reserved.

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Thursday, 31 May 2012 01:49 PM
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