Press Release No. 12/266

Press Release: IMF Managing Director Christine Lagarde Welcomes the Eurogroup’s Decision to Grant Financial Assistance to Spain

July 20, 2012

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement today on the decision by the Eurogroup to provide up to €100 billion in financial assistance to Spain to strengthen its financial institutions:

“We welcome the decision made today by the Eurogroup to grant financial assistance from the European Financial Stability Fund (EFSF) to Spain to recapitalize its banking sector. The recapitalization of weak banks and the other reforms attached to the agreement are consistent with the IMF's recommendations in the recent Financial Sector Stability Assessment (FSSA) and Concluding Statement of the Article IV Consultation mission. The implementation of these measures will contribute to significantly strengthen Spain’s financial system, an essential step in restoring growth and prosperity in the country.”