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Geithner, Lagarde welcome European commitment to assist Spain.

| WASHINGTON, June 9 (KUNA) -- US Treasury Secretary Tim Geithner welcomed on Saturday the European commitment to financially assist Spain's banking sector.

"We welcome Spain's action to recapitalize its banking system and the commitment by its European partners to provide support", said Geithner in a statement.

"These are important for the health of Spain's economy and as concrete steps on the path to financial union, which is vital to the resilience of the euro area", he added.

Meanwhile, International Monetary Fund (IMF) Managing Director Christine Lagarde also welcomed in a statement the measures taken by the Spanish authorities in recent weeks to strengthen the banking system.

"Providing a credible back stop to recapitalize weaker segments of the banking system has been a key recommendation of the IMF's recent Financial Sector Assessment Program (FSAP) conducted in Spain", she added.

Lagarde noted that "the willingness of Spain's Euro Area partners to financially support the Fund for Orderly Bank Restructuring (FROB) with up to EUR 100 billion is a crucial step for the success of the Spanish authorities' strategy. This scale of proposed financing, which is consistent with the capital needs identified in the FSAP, gives assurance that the financing needs of Spain's banking system will be fully met".

"The IMF stands ready, at the invitation of the Eurogroup members, to support the implementation and monitoring of this financial assistance through regular reporting", she concluded. (end) KUNA 092343 Jun 12NNNN

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Publication:Kuwait News Agency (KUNA)
Geographic Code:4EUSP
Date:Jun 9, 2012
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