Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

EU says rescue program for Spain's banks on track

Send a link to a friend

[February 05, 2013]  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 euro100 billion ($136 billion) credit line to help the banks. Madrid has so far drawn euro39.5 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.

[Associated Press]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

 

 

 

Civic

< Top Stories index

Back to top


 

News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor