Spain’s economy minister said yesterday the eurozone’s fourth-largest economy last year narrowly escaped a full state rescue thanks to an EU bailout of its ailing banking sector.
“The perception of reality was far worse than reality itself. The financial aid helped put all the cards on the table,” Luis de Guindos said in an interview published in leading centre-left newspaper El Pais, referring to the bank stress tests that were then carried out.
“If Spain had not asked for financial aid, it would have ended up being rescued.”
The rescue plan agreed in July 2012 offered up to €100bn ($130bn) to save Spain’s financial sector from collapsing under the bad loans left over from a housing bubble that burst in 2008.
The Spanish banks have so far taken €41.3bn.
Spain plunged into recession in 2011 and market concerns about the country’s financial stability last year saw its financing costs soar.
In the interview, de Guindos said that Spain does not envisage asking for more funds. “A new contract would have to be negotiated and the question does not arise because the doubts have been lifted.”
The minister reiterated that the Spanish economy will shortly exit from recession.
“The recession is over. The question now concerns the strength of the recovery,” he said.