EU says rescue program for Spain's banks on trackFebruary 4, 2013 @ 7:37 am
BRUSSELS (AP) - The rescue program for Spain's banks is on track, according to a review by EU authorities, but the country faces significant economic challenges, including high unemployment and a shrinking economy.
Spain last year agreed to a rescue of its banking sector, which took huge losses on the real estate market's collapse in 2008. Spain's 16 fellow member states in the eurozone have given it a (EURO)100 billion ($136 billion) credit line to help the banks. Madrid has so far drawn (EURO)39.5 billion and promised broad reforms of the financial sector.
Monday's review by the European Commission and the European Central Bank concludes that banking sector conditions "have broadly stabilized" since the start of the program in June.
Access to credit markets has also improved, both for the government and for the private sector.
"The successful conclusion of the second review mission to Spain shows that the repair and reform of the Spanish financial sector is proceeding apace," said Olli Rehn, the European Union's monetary affairs commissioner.
Despite the economic problems, the review says Spain needs to make progress toward balancing its budget.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
So far, King County voters are rejecting higher car tab fees to save buses
Minimum Age Debate
There's a push to raise the age from 18 to 21 in order to legally buy tobacco
Time for Change
Shannon Drayer is expecting some changes after the Mariners' eighth straight loss
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.