ECB, IMF in talks over EUR 300 billion Spanish rescue plan

The European Central Bank is negotiating with the International Monetary Fund on a Spanish rescue package worth potentially 300 billion euros (239 billion pounds), Dutch financial daily Het Financieele Dagblad reported on Friday, without naming its sources.

The package would pave the way for the ECB to buy Spanish bonds to lower Madrid’s borrowing costs under the bank’s bond-buying plan announced last week. The ECB, however, wants to ensure the participation of the IMF to make sure Spain faces strict conditions to cut spending and reform its economy, the paper said, citing people familiar with the matter.

“The ECB is working on a framework for the new programme to buy state bonds, and this involves strict IMF monitoring,” a person was quoted as saying by the paper.

The IMF would determine the conditions of the package, and a programme would be along the lines of IMF programmes, taking three years and amounting to a maximum of 300 billion euros, the paper said.

Via – Reuters

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