The Deputy Prime Minister, Soraya Saenz de Santamaria, has been endorsed by the IMF, which ruled to consider a bailout for Spain, and U.S. authorities that supported banks to go directly to European funds for recapitalization.
The problem is not in Spain as a state, but the financial system “at some point,” said Saenz de Santamaria, after his meeting with Geithner at the Treasury Department headquarters in the U.S. capital.
“The Secretary of the Treasury has said that work in the same direction and that we must find a solution to the banks,” Santamaria said to the media.
Previously, the Spanish Vice President held a “fruitful” meeting of an hour with Christine Lagarde, the managing director of the International Monetary Fund (IMF), to which exposed the Government’s firm commitment to austerity to reduce the deficit and structural reforms to improve competitiveness.
A part-time, the newspaper The Wall Street Journal claimed that the IMF was considering a contingency plan for a loan to Spain if that fails the funding required to recapitalize Bankia, fourth Spanish bank recently nationalized.
Lagarde itself was responsible for denying the information with a blunt statement, after the match with Saenz de Santamaria.
“There is no such plan. We have not received any request in this regard and we are not working in any financial support,” said the director of the IMF.
Meanwhile, Santamaria, in brief remarks to reporters on leaving the Treasury, emphasized the denial and stressed that Lagarde had lifted itself “any suspicion that might have been generated during the day.”
“I had the trip planned for months, but this week has become an opportunity for decision makers at certain levels can learn the important efforts of the Spanish people are doing to overcome the crisis and to emerge strengthened Spain” also explained the vice president.
“Although the agenda was before, I have taken the opportunity to be heard the voice of our country and, above all, concerned that is all over Spain to emerge from the crisis, and to also help out the euro of the crisis.
Santamaria’s visit comes a week in which the Spanish risk premium has soared to record highs against the doubts generated by the Bankia rescue plan and the needs of other financial institutions heavily exposed to toxic real estate assets.
Since the advent of the Popular Party government, who else has visited the U.S. is the Minister of Economy, Luis Guindos, on two occasions, in which he met with Geithner, Lagarde and the president of the Federal Reserve (Fed) Chairman Ben Bernanke.