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Monday, June 25, 2012

Neverending bailout saga:Spain requests EU aid, market hopes dim

Spain requests EU aid, market hopes dim | Reuters

(Reuters) - Spain formally requested euro zone rescue loans to recapitalize its debt-laden banks on Monday as the euro and shares fell on investor skepticism about this week's EU summit. Spanish Economy Minister Luis de Guindos asked for up to 100 billion euros ($125 billion) in a letter to Eurogroup chairman Jean-Claude Juncker, saying the final amount of financial assistance would be set at a later stage.

A man pushes a pram past a Banco de Valencia bank branch in Madrid June 25, 2012. Spain formally requested on Monday European aid of up to 100 billion euros for its banks but did not specify how much money it will seek to recapitalize ailing lenders. REUTERS-Andrea ComasHe confirmed his intention to sign a Memorandum of Understanding for the package by July 9 and said the amount should be enough to cover all banks' needs, plus an additional security buffer.
The rescue, agreed on June 9, is intended to help Spanish lenders recover from the effects of a burst real estate bubble and a recession, which have piled up bad loans and sinking property portfolios.

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