Spain Could Ask For Aid Through ESM Precautionary Credit Line

Spain Could Ask For Aid Through ESM Precautionary Credit Line


The possibility of Spain requesting financial aid through a precautionary credit line from the EUR 500 billion rescue fund, the European Stability Mechanism, is currently under discussion, the Financial Times reported Wednesday.
This money could then be used to purchase Spanish bonds at auction in an emergency, the newspaper said citing senior officials. Because the aid would only be a credit line rather than a bailout, the scheme is expected to face less political opposition in northern creditor countries, it said.
"They are moving to a request, yet it may not happen today or tomorrow or this week," FT said quoting a senior EU official. The official also noted that the German resistance to the plan has faded.