IMF Begins Internal Talks Over Spain Loan

The International Monetary Fund has started discussing contingency plans for a rescue loan to Spain in the event that the country fails to find the funds needed to bail out its third-largest bank by assets, Bankia SA, BKIA.MC +0.19%people involved in the handling of the Spanish crisis said Thursday.

Both the European Union and the IMF want to avoid having to bailout Spain at all costs, the people said, but initial planning through the IMF's European department is under way given that the country is struggling to raise a €10 billion ($12.36 billion) shortfall in funds to bail out Bankia.

A three-year rescue loan for Spain could be as much as €300 billion, one person said, although any bailout could involve smaller, shorter-term loans.

Read Full Article from Wall Street Journal

- Posted: 2012-05-31 12:52:03

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