Spain seeks bailout loan
Spain has become the fourth country to seek a European bailout.
Earlier bailouts have been given to Greece, Ireland and Portugal.
The Bailout as agreed by European finance ministers’ amounts to €100bn. Spanish Prime Minister Mariano Rajoy welcomed the news saying the bailout had secured “the credibility of the euro”.
The bailout was given after Spain on Saturday requested it from the other 17 countries that use the Euro as their national currency.
The loans were needed to rescue Spain’s banks that have been weakened from bad real estate loans.
The bailout has not come without controversy.
With some saying Spain has received a better deal than the other three countries that have been bailed.
Greece, Ireland and Portugal, agreed to make deeper cuts in their government budgets unlike Spain that has been told to do so to secure help.
Ireland was made to make deep cuts in their national budget, which was unpopular amongst many people.
The Sinn Fein finance minister says that Spain has received a more favourable bailout than Ireland did.
He says that Ireland pays more interest than Spain does.
It’s been said that Ireland pays interest at 3.7% while Spain pays only 3%.
Mr Noonan has dismissed this however, saying the funds will be provided through the EFSF/ESM at the same interest rates which apply to funds provided to other programme countries.