BAILOUT

Spain’s Banks Need 40 Billion Euro

Says the IMF.

Act now, leaders in Europe told Spain this week. The country is expected to ask for help recapitalizing its banks Saturday, and a Eurogroup conference call that lasted two and a half hours on Saturday ended with officials saying that a statement would come after the Spanish government had time to talk. Politicians and market watchers are afraid of what may happen if the debt-laden country delays, as elections in Greece scheduled to June 17 add to political and economic uncertainty in the euro zone. “There is a need to ensure that the euro area is properly ringfenced and protected from possible Greek fallout, and that means strengthening Spain’s banks,” one EU official told reporters.