Press Release No. 12/215

IMF Managing Director Welcomes Eurogroup Commitment to Financially Assist Spain in its Efforts to Strengthen its Banking Sector

June 9, 2012

Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the statement below today, following the announcement by the Eurogroup of its willingness to financially support Spain in its efforts to further strengthen the country’s banking sector:

“I strongly welcome the statement by the Eurogroup, which complements the measures taken by the Spanish authorities in recent weeks to strengthen the banking system. Providing a credible back stop to recapitalize weaker segments of the banking system has been a key recommendation of the IMF's recent Financial Sector Assessment Program (FSAP) conducted in Spain. The willingness of Spain’s Euro Area partners to financially support the Fund for Orderly Bank Restructuring (FROB) with up to EUR 100 billion is a crucial step for the success of the Spanish authorities’ strategy. This scale of proposed financing, which is consistent with the capital needs identified in the FSAP, gives assurance that the financing needs of Spain's banking system will be fully met.

“The IMF stands ready, at the invitation of the Eurogroup members, to support the implementation and monitoring of this financial assistance through regular reporting."