Spain's Economy Minister says $125bln enough for banks

PanARMENIAN.Net - Spain's Economy Minister says he doesn't expect his country's banks to need all of the €100 billion ($125.7 billion) being provided by the countries that use the euro to prevent the Spanish financial sector's collapse, The Associated Press reports.

Spain's banks have an estimated €184 billion in problematic real estate loans and investments following the collapse of the country's property market in 2008. The other 16 eurozone countries have set aside a rescue package for troubled Spanish lenders.

Economy Minister Luis de Guindos told Onda Cero radio Monday, Sept 3, that, "In principle, it looks like not all of (the €100 billion) will be used."

De Guindos said austerity policies being enacted by the government will be enough for Spain to meet its budget deficit target of 6.3 percent this year without additional measures.