Spain asks EU for US$125 billion to support its banks

In order to ring off contagion if Greece exits the euro, Spain will ask the EU for US$125 billion to support the country's banks.

Spain's Finance Minister Luis de Guindos made the announcement on Saturday, claiming that the funding will be assistance and not a rescue.

“The Spanish government declares its intention of seeking European financing for the recapitalization of the Spanish banks that need it,” De Guindos told the media in Madrid on Saturday.

He expects that funds will be sufficient to cover the banks plus provide a small buffer.

Image of Luis de Guindos Jurado at the World Economic Forum Annual Meeting 2012