SPAIN has entered the new year without eurozone support for its banks, following the conclusion of the bloc’s aid programme.
The support, which amounted to €41 billion during the debt crisis, has brought the country’s banks back onto a sound footing, according the European Stability Mechanism (ESM).
ESM head Klaus Regling said: “Spain’s programme exit after one year is an impressive success story,”
He added: “Despite the challenges ahead I am confident that the ESM’s support, combined with structural reforms, will allow the Spanish economy to achieve stability and substantial growth,”
In 2012 Madrid managed to negotiate a €100 billion deal with eurozone states to bail out the nation’s banks, which were on the verge of collapse. From the total loan secured, Spain ultimately spent only €41.3 billion.
Regling concluded: “The Spanish success shows that our strategy of providing temporary loans against strong conditionality is working,”