Spain rescue is impossible "hopefully domino effect does not come to Spain"
Minister claims Spain rescue is impossible
Updated Wednesday, June 6, 2012 0:19 am TWN, AFP
MADRID--Spanish Budget Minister Cristobal Montoro said Tuesday it was technically impossible to rescue the debt-laden economy, the fourth largest in the eurozone.
“Spain cannot be rescued in the technical sense of the term. Spain does not need that. Spain needs more Europe, more mechanisms allowing the integration of Europe,” he told Onda Cero radio.
Montoro did not explain why a rescue would be impossible but many analysts fear the size of the economy would stretch the resources of existing European rescue mechanisms.
As bond markets charge exorbitant rates to lend to Spain, however, investors fear Madrid may be forced to seek external aid to finance a bailout of the bad loan-ridden financial system.
Stricken Spanish lender Bankia alone has asked for a total 23.5 billion euros (US$29.4 billion) to help repair a balance sheet that has a vast exposure to the property market, which crashed in 2008.
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