10/07/2008
Spain Prime Minister Jose Luis Rodriguez Zapatero says the country is setting up a euro 30 billion (US$41 billion) fund to help the financial sector. He termed the provision a short term loan aimed at pumping much-needed liquidity into the system.
Zapatero said the fund could be extended to 50 billion euro (US$68 billion) if necessary, but stressed the government would not be buying up bad debt, like the rescue plan recently passed by the United States Congress. He said the funds would be backed by the Treasury and used for the purchase of “healthy assets, not toxic ones. It's not an initiative to rescue or salvage the financial market,” Zapatero said. “It's a preventative measure for businesses and people to benefit from.”
Zapatero described the fund as "a huge temporary loan that we can do because we have a reasonable level of debt.''
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