Chilean Finance Minister Felipe Larrain, today described as “good news”, the Spanish bank bailout but warned that the initiative does not solve the serious problems of Europe.
“This is good news. But I repeat that this does not solve Europe’s problems. What this does is give peace of mind that will be the resources to capitalize the Spanish financial system, Spain is an important country within the European Union, but we still have to know the details of the plan, “he said.
Larrain said it’s good to see a Europe that stands, improving “but that will be a long-term,” he said.
Spain agreed on Saturday with the Eurogroup, composed of the 17 economies of the euro, a ransom of EUR 100 billion to clean up its financial system.
Larrain Minister said that “to have secured funding does not replace the reforms that are often difficult changes, drives that have undertaken the governments of Spain and Italy with great courage, but that in itself will be a long process. We have a complex scenario in Europe and we know that the most likely scenario is that of a recession, “he said.
He added that while this announcement is a sign of confidence on the part of the eurozone to Spain, and is good news for the markets, does not solve the problems of Europe and it remains to know the detail about the source of funds.
The head of finance of Chile reiterated that the government is monitoring the situation minute by minute European financial and liquidity conditions in the local market.
He recalled that on Friday there was a special meeting of the Financial Stability Board “and were reviewing the situation of the financial system and we see no reason for worry in our country.”
Larrain said the government has set as one of the central elements of the anti-crisis contingency plan to ensure liquidity and access to credit.