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The next big question in Europe: Will Spain ask for its bailout, so that the ECB’s unlimited bond buying scheme can be activated?A report in Dutch newspaper Het Financieele Dagblad says a bailout is being cobbled together.
Via Google Translate, it says…
The European Central Bank (ECB) is negotiating with the International Monetary Fund (IMF) on a support package for Spain of possible € 300 billion.
The central bank wants to make sure that the IMF participates, also financially. Only with the full participation of the IMF, the ECB is confident that strong conditions to Spain for cuts and reforms are made.
Strict supervision of the IMF
So say good imported sources around the negotiations told this newspaper. “There are informal talks are underway between the ECB and the IMF,” said an insider. “The ECB operates a framework for the new program for the purchase of government bonds and that includes strict supervision of the IMF.”
Anyway, it’s still going to be up to Spanish PM Rajoy to make this happen.
European finance ministers are actually meeting today and this will be discussed. Expect more news on this front by the end of the day.
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