Spain waits on bank stress tests before accepting EU bailout

Spain waits on bank stress tests before accepting EU bailout
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Spain says it will await the result of two audits on its under pressure banks before finalising a request for European aid to bolster its failing financial institutions.

In early June Spain agreed to a 100 billion euro loan to shore up its banks, but Madrid wants to see the results of the audits before accepting EU help.

Spain is reluctant to accept the loan and refuses to define it as a bailout.

Spain’s Treasury Minister Christobal Montoro said in parliament: “Spain does not need any bailout as long as it carries out the reforms that it is currently following.”

Madrid has come under pressure from the leaders of the world’s most powerful economies at the G20 summit in Mexico to move quickly to resolve its debt crisis in order to prevent contagion as the eurozone crisis lurches on.

Prime Minister Mariano Rajoy backed his treasury minister: “We are going to continue with the reforms the economy requires. We will keep our promise not to spend what we do not have. There must be a banking union and fiscal integration. We believe this is best for Europe and best for Spain.”

Spanish trade unions disagree and held a mass demonstration in the capital Madrid on Wednesday.

On Tuesday the wives of 300 miners protested outside the Senate in support of their husbands who have held strikes for three weeks in a row over state cutbacks to the industry.

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