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EU's Spanish Financial Aid May Come From EFSF: Report

339 days ago

(RTTNews) - Spain's banks may receive the EUR 100 billion aid offered by the European Union through the European Financial Stability Facility (EFSF), German daily Die Welt reported Monday.

Using the EFSF instead of the permanent rescue fund European Stability Mechanism (ESM), which will be operational from July, will help to increase the total capacity of the region's financial firewall to EUR 800 billion, the report said.

For Germany, this could mean an additional liability of up to EUR 27 billion and the German government is unlikely to accept the suggestion for the same reason, the daily said.

Data from Bank of Spain revealed Monday that Spanish banks' bad loan ratio increased to an 18-year high in April.

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