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Euro zone's Spain aid for bank recap, not other use -Commission
July 19, 2012 / 10:24 AM / 5 years ago

Euro zone's Spain aid for bank recap, not other use -Commission

BRUSSELS, July 19 (Reuters) - The up to 100 billion euros that the euro zone has agreed to lend to Spain is only for the recapitalisation of the country’s banks and not for any other possible use like bond market intervention, the European Commission said on Thursday.

“The up to 100 billion euros, which the euro zone has undertaken to provide to Spanish banks is to do just that, it is only for that purpose and not for any other,” Commission spokesman Simon O‘Connor told a regular briefing.

“There is no link between assistance for bank recapitalisation in Spain and any other type of financial assistance, which might be requested at some further juncture by Spain or anybody else,” he said.

Spanish daily El Pais wrote on Thursday that any amount not used for bank recapitalisation out of the up to 100 billion euros could be used to buy public debt.

“The press reports have been based on a misinterpretation of the legal document,” O‘Connor said. (Reporting By Jan Strupczewski; editing by Rex Merrifield)

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