Spain Asks for 100 Billion Financial Aid from EU

The Minister of Finance of Spain Louis de Guidos asked for aid from Euro Union partner countries to recapitalize banks, writes The Financial Times.

“I have honor to address on behalf of the Spanish Government and ask for financial aid to restore financial-economic crisis in Spain and recapitalize financial institutions,” reads the letter by Guidos.

Jean Claude Yunker, Prime Minister of Luxemburg, head of EU Financial Committee, wrote in the response letter that the credit application will be discussed on July 9.

The exact sum is not mentioned in the letter, though Spain expects to receive at least 100 billion Euros.
The Spanish Government anticipates that the sum will be allocated to banks through state institutions, though majority of countries of Euro Zone are against this proposal. EU is willing to allocate the sum directly to the banks.

According to the daily this is the main reason for delay of the loan.

In case the credit is allocated, Spain together with Ireland, Greece and Portugal will be the fourth country to receive major financial aid from EU.