Bloomberg News

Spain’s Salgado Says Next Greek Aid Payment Can’t Be Divided

June 19, 2011

June 19 (Bloomberg) -- Spanish Economy Minister Elena Salgado said euro area finance ministers are discussing a 12 billion-euro ($17.1 billion) aid payment to Greece after her Belgian counterpart, Didier Reynders, said the group may authorize only half that amount.

“The way the money is distributed has to do with Greece’s specific refinancing needs,” Salgado told reporters as the finance chiefs met in Luxembourg late today. “You can’t divide it. The fifth payment is 12 billion euros.” No one at today’s meeting proposed authorizing a 6 billion-euro payment, she said.

Salgado said the 6 billion-euro figure refers to Greece’s refinancing needs in August. “But that’s not what they’re asking for,” she said. “Greece needs money not only to refinance its debt but also its budget. The 6 billion are included in the 12 billion.”

The Spanish minister said private investors don’t need incentives to participate in a new rescue package for Greece. “The idea of many countries is that the private sector has to assume its share of the problems that Greece has at this moment.”

--Editor: Patrick G. Henry

To contact the reporters on this story: Anabela Reis in Luxembourg at areis1@bloomberg.net; Andrew Davis in Luxembourg at abdavis@bloomberg.net

To contact the editors responsible for this story: Angela Cullen at acullen8@bloomberg.net; Tim Quinson at tquinson@bloomberg.net


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