FRANKFURT (MNI) – The following is a statement from Jean-Claude
Juncker, president of the Eurogroup of euro area finance ministers,
following the publication Friday of Spanish bank stress test results:
“On 20 July 2012 the Eurogroup decided to grant financial
assistance to Spain in the form of a banking recapitalisation programme.
It was agreed that it would cover financing needs of up to EUR 100
billion, while the specific amount would be determined based inter alia
on a thorough bottom-up assessment of capital shortfalls for individual
banks.
The results of the bank-by-bank stress test conducted by an
external consultant with regard to 14 banking groups comprising more
than 90% of the Spanish banking system were published today.
I am comforted by the fact that the total capital shortfall of the
Spanish banking sector comes out at slightly less than EUR 60 billion.
The final State aid provided to Spanish banks will be lower than the
reported capital shortfall, given measures to be taken by the banks in
accordance to their recapitalisation and restructuring plans.
The assessment shows that the total financial assistance agreed in
July should be more than adequate to cover the final capital needs,
including a comfortable safety margin. It should ensure that the
recapitalisation process of banks can proceed efficiently and in
accordance with previously agreed timelines.
I very much welcome that progress on implementing the commitments
as defined in the Memorandum of Understanding is well on track. I am
confident that the reforms attached to this financial agreement will
contribute to ensuring a return of all parts of the Spanish banking
sector to soundness and stability.”
–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@mni-news.com
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