U.S. welcomes Spain’s bank recapitalization action

By Agence France-Presse
Saturday, June 9, 2012 19:27 EDT
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US Treasury Secretary Timothy Geithner, pictured on June 6, said he welcomed Spain's appeal to the eurozone for a 100-billion-euro ($125 billion) lifeline for its banks.  (AFP)
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US Treasury Secretary Timothy Geithner on Saturday said he welcomed Spain’s Spain’s appeal to the eurozone for a 100-billion-euro ($125 billion) lifeline for its banks.

“We welcome Spain’s action to recapitalize its banking system and the commitment by its European partners to provide support,” Geithner said in a brief 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,” Geithner said.

Spain requested the European lifeline Saturday to save its stricken banks and try to avert a broader financial disaster.

Fellow finance ministers in the 17-nation eurozone accepted the plea in a statement Saturday released after an emergency video conference lasting more than two hours.

The deal imposed no conditions on the overall Spanish economy, and no new austerity measures.

Agence France-Presse
Agence France-Presse
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