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FBN’s Ashley Webster on the state of Spain’s economy and how much money the banks will need to remain solvent.
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The latest flashpoint at the center of the eurozone crisis is Spain.
Expecting huge bailout for its ailing banks -- Webster is in Madrid and joins us a lot of this morning -- -- Yeah good morning -- can absolutely Spanish banks certainly in the cross hairs of this -- prices.
Today we may get an actual figure on amount of money that the Spanish government believes that its major banks may need an extra capital.
Yesterday we got the latest -- saying that banks -- may need up to.
-- 78 billion dollars in extra money although the government says is no it going to be nowhere close to of that.
They call the results are accurate credible and manageable and they say the major banks in Spain probably won't need any money at so we're talking about banks like Santander and BB VA.
Now -- eurozone finance ministers meeting in Luxembourg today so we could.
Find out how much money Spain wants for its banks today or perhaps tomorrow when.
The Spanish prime minister will meet in a row with the leaders of Germany France and Italy the problem for the Spanish banks is it's been increasingly hard to tap into the Interbank lending market.
And they need help and does so what we may get.
Over the course of the next week if not before -- is perhaps and relaxing of the EU rules.
In particular the maybe some easing of the collateral -- civil enable more assets on the banks of us Spanish.
Institutions to enable them to get access to more loan money also the establishment.
Which is supposed to begin in July of the ESM the European stability mechanism.
That money some 500 million euros could be used to buy the debt of both Spain and Italy if needed as we know.
Germany has been strongly strongly against that.
But mrs.
Merkel as we -- has been backed into a corner she's under the cost.
But she's also under the costs from -- own party members in Germany who say you should not bow to the weaker countries of Europe we wouldn't want her job.
At this moment that's -- so we'll continue to follow it today.
Nichols lets not forget we have a big EU's -- at the end of next week in Brussels where all of this could actually be put into -- -- back to you.
-- thank you so much for that Ashley Webster live in Madrid Spain.
