The International Monetary Fund said it will give “independent advice” on the bailout of Spanish banks and publish its reports quarterly unless Spanish or European authorities object.
Finance ministers from the euro region today signed off on a 100 billion-euro ($122 billion) aid package for Spanish banks, adding to three existing bailouts to countries in the currency union. The Washington-based IMF, which co-finances loans to Greece, Ireland and Portugal, wasn’t asked to contribute to the Spanish package.
While the IMF isn’t a party to the memorandum of understanding for financial assistance or responsible for carrying it out, the reports “can be used by the authorities and the European Commission in their reviews under the financial assistance,” the IMF said in an e-mailed release today.
The IMF said the reports will focus on progress toward recapitalization of the Spanish banking industry without discussing individual firms.
“Fund staff would participate in all financial assistance monitoring missions conducted” by the commission, the IMF said. “Confidential information shared with the fund staff, and particularly individual bank information, will not be included in the reports.”
Both the commission and the Spanish government and central bank can refuse publication of reports or delay them on a case- by-case basis, it said.
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