June 10, 2012 12:14 PM

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Euro-zone FMs willing to respond to bail out request from Spain

Euro-zone finance ministers have said that the Euro-group was willing to respond favourably to the tune of 100 billion euros that is 125 billion US dollar to a bailout request from Spain for its troubled banks. In a statement issued after a two-and-a-half hour conference, the 17 ministers said, the loan needed to cover estimated capital requirements with an additional safety margin, estimated as summing up to 100 billion euro in total. The statement said the funds could be paid to Spain's Fund for Orderly Bank Restructuring which would then channel them to banks.As for conditions in return for the loan, the Euro-group said this should be focused on specific reforms targeting the financial sector. The Statement said, the group has invited the IMF to support the implementation and monitoring of the financial assistance with regular reporting.

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