This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
OK
Dublin: 0 °C Sunday 19 January, 2020
Advertisement

ECB, IMF 'in talks over €300bn Spanish bailout' - report

A Dutch newspaper quotes an insider as saying informal talks for a full-blown sovereign bailout are underway.

IMF head Christine Lagarde and ECB president Mario Draghi are reportedly in preliminary discussions about a €300 billion bailout for Spain.
IMF head Christine Lagarde and ECB president Mario Draghi are reportedly in preliminary discussions about a €300 billion bailout for Spain.
Image: Dimitri Messinis/AP

A DUTCH NEWSPAPER has reported that the European Central Bank and the International Monetary Fund have begun discussions on the possibility of a €300 billion bailout package for Spain.

The Financieele Dagblad, an Amsterdam-based financial newspaper, said the two parties had started “informal talks” led by ECB president Mario Draghi and IMF director-general Christine Lagarde.

It added that the aid package would be discussed at the two-day meeting of EU finance ministers which begins today in Cyprus.

The IMF is being involved in the arrangements, it said, after the ECB last week agreed a new policy where countries which could be eligible for its new bond-buying programme must submit to strict financial oversight.

Curiously, the report does not mention any involvement from the European Commission – the third leg of the ‘Troika’, which acts as a sort of collective representative of the other Eurozone nations, and which would usually be expected to have a major role in any bailout.

If the Spanish bailout funds were eventually paid from the European Stability Mechanism – which, when it comes into effect, will make up two-thirds of the bailout funds for Ireland, Greece and Portugal – then Ireland could have to contribute almost €3.2 billion to the Spanish rescue.

Read: Quest for bank debt deal to continue at Cyprus ministers’ meeting

  • Share on Facebook
  • Email this article
  •  

About the author:

Gavan Reilly

Read next:

COMMENTS (17)