Arab Today, arab today eurozone set for emergency talks on spain bank crisis
Last Updated : GMT 18:13:09
Arab Today, arab today
Arab Today, arab today

Eurozone set for emergency talks on Spain bank crisis

Arab Today, arab today

Arab Today, arab today Eurozone set for emergency talks on Spain bank crisis

Brussels - AFP

Eurozone finance ministers are to hold an emergency conference call Saturday on an expected request for aid from Spain, the fourth and biggest country to cry for help in Europe\'s two-year debt crisis. The eurozone greenlighted the \"holding of a teleconference of the Eurogroup on Saturday at 4:00 pm to agree a declaration on Spain\'s intention to request aid and the Eurogroup\'s commitment to granting it,\" a European government official said. A statement was likely to be issued later on Saturday. In Madrid, a government spokeswoman said Spain had not changed its position and was not seeking aid, but an EU official said that while Madrid might not have made an official request, \"I can confirm that there will be a conference call.\" Earlier, another official who also asked not to be identified said the 17-member eurozone expected the Spanish aid request \"any time now.\" \"The solution must come quickly,\" Jean-Claude Juncker, the Luxembourg premier who heads the Eurogroup, said in an interview with German radio late on Friday as pressure mounted on reluctant Spain to seek a bailout. German central bank chief Jens Weidmann urged Madrid on Saturday to call on the eurozone\'s temporary financial rescue fund, the EFSF, if needed to bolster the bank\'s balance sheets. \"If Spain feels overwhelmed by its financial needs, it should use the instruments which have been created for that,\" Weidmann said in an interview to appear on Sunday in the Welt am Sonntag.  If Madrid feels it has no option but to ask for help, it would mean the eurozone sovereign debt crisis has defied the authorities\' desperate attempts to contain the need for rescues to Greece, Ireland and Portugal. It would also see the eurozone in uncharted waters -- Spain\'s economy is more than twice the size of Greece\'s, Ireland\'s and Portugal\'s combined. As senior officials from the euro area prepared the nuts and bolts of a Spanish bank bailout, once requested, new IMF stress tests showed that banks in Europe\'s fourth biggest economy need about 40 billion euros ($50 billion) in new capital. International Monetary Fund chief Christine Lagarde on Saturday weighed in to demand a eurozone fix by calling for closer cooperation among the single currency countries. She argued in an interview for a common eurozone debt guarantee which would give \"a clear signal to the markets that Europe has a common plan and its members want to follow it together. \"What is currently undermining efforts to support the euro are the uncertainties and doubts about the long-term view of politicians and whether the eurozone will last,\" Lagarde told the daily Sueddeutsche Zeitung. German Finance Minister Wolfgang Schaeuble told the regional newspaper Passauer Neue Presse meanwhile that the time has come for tighter European integration. \"It\'s clear. We have to attain the next step of political integration in Europe. The crisis is forcing the necessary transformations to take place more quickly,\" he said. The IMF tests showed that while Spain\'s top two banks -- BBVA and Banco Santander -- were solid, the rest of the banking sector was struggling. If the current stress continues \"the largest banks would be sufficiently capitalised to withstand further deterioration, while several banks would need to increase capital buffers by about 40 billion euros\", an IMF statement said on Friday. Speaking on background, an IMF official said the banks would likely need a lot more to ensure there was a \"credible backstop\" in worst-case scenarios. \"In our view the stress tests are a good indicator but they are basically a floor for what you would probably need,\" the official said. Often, the official said, to convince financial markets that banks were strong enough, they would need a cash buffer of 1.5 to two times the level of new capital mandated under the stress test. \"Usually you come up with a buffer ... large enough to convince markets so that people don\'t say, oh well, what if this happens, what if the growth is even worse?\" The stress test results were originally to be released on Monday, but the timetable was moved up as European diplomats said Spain would likely move on Saturday to begin crafting a deal for an EU rescue of its banks. Media reports earlier said Spain could ask for a bank rescue -- estimated by Fitch Ratings at up to 100 billion euros as early as Saturday. US President Barack Obama on Friday urged Europe to act swiftly to fix its banking woes or pay the price. \"In the short term they have got to stabilise their financial system. Part of that is taking clear action as soon as possible to inject capital into weak banks,\" he told reporters. \"Just as important, leaders can lay out a framework and a vision for a stronger eurozone, including deeper collaboration on budgets and banking policy,\" he added.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eurozone set for emergency talks on spain bank crisis Arab Today, arab today eurozone set for emergency talks on spain bank crisis

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom,China plunges into biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom,China plunges into biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 05:34 2017 Monday ,27 February

Brexit sows seeds of doubt for British farmers

GMT 06:38 2017 Sunday ,26 February

US rig count increases

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Humans spark most US wildfires

GMT 14:58 2017 Tuesday ,28 February

Humans spark most US wildfires
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Final Phantom VII signals end of an era

GMT 14:31 2017 Tuesday ,28 February

Final Phantom VII signals end of an era
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday