Thursday, May 23, 2013

Spain banks may need to raise money to meet provisions: Rajoy

BRUSSELS (Reuters) - Spain's Prime Minister Mariano Rajoy on Wednesday said the country's banks may have to raise capital on the financial markets to meet higher provisioning requirements.

Rajoy, who was speaking at a news conference following a summit of European leaders in Brussels, said however that Spain would not need to tap more European funds on top of the 41-billion-euro ($53 billion) bailout it sought last year for its banks.

"In the case that it would be needed, I don't think it would have to come from the European Stability Mechanism. If there is a need to book provisions, I believe it could be done by tapping (financial) markets," Rajoy told journalists.

"In any case, we're talking about a very small amount and I am not worried whatsoever by this issue," he added. ($1 = 0.7766 euros)

(Writing by Julien Toyer, Editing by Sarah White)

Source: http://news.yahoo.com/spain-banks-may-raise-money-meet-provisions-rajoy-161838777.html

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