0 Europe Lend Rp 1,200 trillion to Bank of Spain

Europe Lend Rp 1,200 trillion to Bank of Spain

Euro zone finance ministers have agreed on Saturday to lend 100 billion euros (Rp 1,200 trillion) to Spain. The money was to 'heal' the sick banks and Madrid will specify exactly what they need as an independent auditor's report out next week.

After the conference calls for 2.5 hours with 17 finance ministers of European countries are reportedly going hot, Eurogroup and Madrid says bailout amount will be enough to dispel any doubts.

"The amount of the loan to cover the estimated capital requirements with additional safety margin, an estimated total of around 100 billion euros," the Eurogroup in a statement, quoted by CNBC ). Spain says need help for its banks, but will not specifying the exact number to two independent consultants Oliver Wyman and the Roland Berger delivered an assessment of the capital needs of the banking sector before June 21.

"There could still be handled and the funds requested are able to cover all the needs of Spanish banks," Finance Minister Luis de Guindos told a news conference in Madrid. G7 countries comprising the United States, Canada, England, Italy, France, Germany and Japan welcomed the plan.

"G7 ministers welcomed the plan of Spanish recapitalize the banking system and the announcement of the Eurogroup which supports financial restructuring Spanish authorities. The move reflects the significant progress over the European movement for better financial and fiscal union to strengthen the monetary union, "the G7 said in a written statement released by the U.S. Treasury.

IMF boss says ready to help supervise euro zone aid for Spanish banks and the size of the planned aid looks pretty. "The IMF is ready to respond to the invitation of the Eurogroup members to support the implementation and supervision of financial assistance through regular reporting," said IMF Managing Director Christine Lagarde said in a statement.

According to Lagarde, euro zone plans to provide up to 100 billion euros was consistent with IMF estimates of Spanish banks' capital requirements and must clarify if the Spanish bank needs met.

Demand bailout triggered bad debt since the bursting of the property bubble is the fourth time that Spain requested help from the European crisis began. After rescuing Greece, Ireland, Portugal and now Spain, the European Union and the IMF already spent around 500 billion euros to the European bailout fund.