E.U. Says No Plans to Activate Funds For Spanish Banks
The European Union has no plans to activate its emergency funds to recapitalize Spanish bank and Spain had no need to appeal for funds to do so, the European Commission said on Thursday.
"There is no plan to activate the EFSF or the ESM to support or recapitalize the Spanish banks," Commission spokesman Olivier Bailly said in answer to a question, referring to its rescue funds, the European Financial Stability Facility and its successor, the European Stability Mechanism.
The spokesman told a regular briefing the EU would only activate funds for any country if bank recapitalization was not possible on the markets and if a government did not have the means to do so itself.
"This is not the case for Spain. This is not necessary for Spain, we believe," Bailly said. (Writing by Philip Blenkinsop; editing by Rex Merrifield)
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