Spanish Banks May Tap Financial Aid Through EFSF, Die Welt Says

Spain’s distressed banks may gain financial help from the euro-area’s temporary rescue fund as political leaders consider ways to expand the availability of bailout resources, the Die Welt reported, citing no one.

Tapping the European Financial Stability Facility to help Spain before the fund is superseded by the permanent European Stability Mechanism next month would in effect widen bailout finance, the German newspaper said.

Regarding the feasibility of such a proposal, Germany’s Finance Ministry told Die Welt that current arrangements mean aid of as much as 100 billion euros ($127 billion) for Spain must be booked as obligations in the new ESM’s accounts.

To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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