BRUSSELS (Reuters) - An agreement with Spain on the details of a euro zone loan to recapitalize Spanish banks is likely to be concluded in a matter of weeks, EU Economic and Monetary Affairs Commissioner Olli Rehn said on Monday.
Spain made a formal request for emergency lending from the euro zone on Monday after euro zone finance ministers made available up to 100 billion euros ($125 billion) for that purpose to Madrid earlier this month.
“I am confident that we can conclude an agreement on the memorandum of understanding in a matter of weeks, so that we can proceed with the restructuring effort,” Rehn said in a statement.
Euro zone finance ministers said last Thursday in Luxembourg that an agreement with Spain should be ready and signed by their next meeting on July 9.
“The policy conditionality of the financial assistance, in the form of an EFSF/ESM (bailout funds) loan, will be focused on specific reforms targeting the financial sector, including restructuring plans which must fully comply with EU state-aid rules,” Rehn said. ($1 = 0.7977 euros)
Reporting by Jan Strupczewski