Spanish Banks May Receive Aid On IMF’s Recommendations

Spain may today move closer to becoming the fourth euro-area nation to receive aid, as the International Monetary Fund said the country’s banks need at least 37 billion euros ($46 billion) to bear a weaker economy.

European Central Bank Vice President Vitor Constancio said yesterday that a Spanish request for a bank bailout is “awaited.” That bid may come as soon as today when finance ministers hold a conference call, said a German official and a European Union aide, who declined to be identified because the matter is confidential.

In time for the call, the IMF released a report overnight disclosing its estimate for the extra capital Spain’s banks need to cope with a worsening economy. The 37 billion-euro figure could rise due to unanticipated losses, the Washington-based lender said. The assessment incorporated Bankia group, which was nationalized on May 9, although not the full 19 billion euros the bank has demanded, because that figure includes items that go beyond the terms of the IMF stress test.

Prime Minister Mariano Rajoy is resisting pressure from European officials to accelerate any request for help as Greek elections loom and Spain’s access to markets narrows. He said June 7 he won’t take any decisions about how to shore up lenders until seeing the results of the IMF analysis and similar tests by two international consultants due this month.

Deputy Prime Minister Soraya Saenz de Santamaria declined to comment when asked at a briefing yesterday whether Spain was seeking a rescue, Bloomberg reported.