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Spain PM rules out EU bank bailout

Monday, May 28, 2012 - 01:07

May 28 - Spain's Prime Minister, Mariano Rajoy, has reassured taxpayers they will get back what the government put into bailing out the troubled lender, Bankia. Rough Cut (no reporter narration).

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(ROUGH CUT ONLY - NO REPORTER NARRATION) Spanish Prime Minister Mariano Rajoy has ruled out a bailout for his country's troubled banking system as Spain's debt yields jump and shares in Bankia SA plummet to record lows following the announcement of a government plan to revive its fourth-largest lender. (SOUNDBITE) (Spanish) MARIANO RAJOY, SPANISH PRIME MINISTER, SAYING: "There will not be any (European) rescue for the Spanish banking system." (SOUNDBITE) (Spanish) MARIANO RAJOY, SPANISH PRIME MINISTER, SAYING: "When Bankia is cleaned up and recapitalised, when it's refinanced, it will be sold and therefore the state will recover the investment it is making now. The alternative to this would been to do nothing, that is to go bust, so we are grabbing the bull by the horns. We cannot allow a financial entity to be in an impossible situation because it affects our country overall." (SOUNDBITE) (Spanish) MARIANO RAJOY, SPANISH PRIME MINISTER, SAYING: "The problem is the accumulated monumental debt we have in Spain and it's that debt that we have to refinance which is difficult at this time. That's why, I insist on being clear, energetic and strong to dissipate any doubts that may exist about the euro. Spain supports, as it always has, the existence of the euro. We think it's a fundamental project for the future of Europe and the future of our country. It's one of the most important things that Europeans have done for many years."

Spain PM rules out EU bank bailout

Monday, May 28, 2012 - 01:07

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