Business News
Spanish government drafts 100-billion-euro rescue plan
Oct 13, 2008, 13:19 GMT
Madrid - The Spanish government Monday drafted plans for a 100-billion-euro (135 billion dollar) lifeline to help the country's banks in the current financial sector crisis.
The cabinet approved by decree the funds to be used for guarantees for inter-bank loans among the country's banks and savings and loans banks for the period up to December 31, 2009.
Premier Jose Luis Rodriguez Zapatero, following the special session of his cabinet, said the goal is to ensure that the banks have greater liquidity at their disposal.
The Socialist government is also still keeping the option open of buying up stakes in banks, Zapatero said, while adding: 'This is currently not necessary.'
He said that thanks to stricter controls in the country, Spanish credit institutions were in a solid position.
Last week, the Madrid government approved a fund of up to 50 billion euros to provide financial backing to banks in buying up assets.
Zapatero is to meet opposition leader Mariano Rajoy on Tuesday to discuss the government's financial rescue package.
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