USA: Spanish Deputy Prime Minister Soraya Saenz de Santamaria says U.S. Treasury Secretary Timothy Geithner expresses that a solution is needed for Spain's troubled financial system.

Record ID: 190358

  • Title: USA: Spanish Deputy Prime Minister Soraya Saenz de Santamaria says U.S. Treasury Secretary Timothy Geithner expresses that a solution is needed for Spain's troubled financial system.
  • Date: 1st June 2012
  • Summary: WASHINGTON, DC, UNITED STATES (MAY 31, 2012) (REUTERS-ACCESS ALL) GENERAL VIEW OF SPANISH DEPUTY PRIME MINISTER, SORAYA SAENZ DE SANTAMARIA, APPROACHING MEDIA STAKE OUT REPORTER ASKING QUESTION (SOUNDBITE) (Spanish) SPANISH DEPUTY PRIME MINISTER, SORAYA SAENZ DE SANTAMARIA, SAYING: "I want to point out that Christine Laggard has recognised the important efforts that Spain is doing in its structural reforms and the Treasure Secretary has also point out that we share the same diagnostic and that we are working in the same direction and in a co-ordinated manner. Therefore, it is important that from these meetings we could take that we are all concerned by the same issues and we all share the need for profound reforms that will strengthen with more confidence and stability at a complicated moment for the European Union as a whole." MORE OF REPORTERS (SOUNDBITE) (Spanish) SPANISH DEPUTY PRIME MINISTER, SORAYA SAENZ DE SANTAMARIA, SAYING: "It is a coincidence that I had already scheduled this trip months ago but nonetheless this trip has turn out to be an opportunity for those who make decision in different levels could learn about the important efforts that the Spanish people is enduring to get out of this crisis and at the same come out strengthen. So, although away from the previous scheduled agenda I have taken advantage of the opportunity to have the voice of our country heard, especially about how concerned the Spanish people is to get out of this crisis and at the same time help the Euro to come out also from this crisis is living at the moment." GENERAL VIEW OF SAENZ DE SANTAMARIA ADDRESSING QUESTIONS (SOUNDBITE) (Spanish) SPANISH DEPUTY PRIME MINISTER, SORAYA SAENZ DE SANTAMARIA, SAYING: "The treasury secretary pointed out that we are working toward the same goal and a solution for the banks must be found because the problem is not a problem per se of Spain as a nation. In a particular time our financial system has had a set of necessities as such as other countries have had them before. This is an issue that it is well known here and it is similar to other European banks needing the same at this moment." SAENZ DE SANTAMARIA LEAVING MEDIA STAKE OUT SAENZ DE SANTAMARIA ENTERING VEHICLE VARIOUS OF SAENZ DE SANTAMARIA DEPARTING INSIDE OFFICIAL VEHICLE
  • Embargoed: 16th June 2012 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: International Relations,Economy,Politics
  • Reuters ID: LVA85F64CQYVN8GP5TGAKOKTBW8G
  • Story Text: Treasury Secretary Timothy Geithner told Spain that a solution is needed for its troubled financial system, Spanish Deputy Prime Minister Soraya Saenz de Santamaria told reporters on Thursday (May 31).
    Saenz de Santamaria said she discussed with Geithner as well as with International Monetary Fund Christine Laggarde strategies to recapitalize Spain's banks.
    The head of the International Monetary Fund said on Thursday she held "very productive" talks with Spain's Deputy Prime Minister and had not received a request from the Spanish authorities for IMF financial support.
    Spanish Deputy Prime Minister told reporters, a few feet away from the U.S. Treasury Department, of the importance that these level meetings to show that the concern from everyone on the same issues and needs for structural financial reforms are mutual.
    "I want to point out that Christine Laggard has recognised the important efforts that Spain is doing in its structural reforms and the Treasure Secretary has also point out that we share the same diagnostic and that we are working in the same direction and in a co-ordinated manner. Therefore, it is important that from these meetings we could take that we are all concerned by the same issues and we all share the need for profound reforms that will strengthen with more confidence and stability at a complicated moment for the European Union as a whole," said Saez de Santamaria.
    Meanwhile, in a statement after the talks, IMF Managing Director Christine Laggarde denied a news report that said the IMF was preparing financial assistance to Spain. When asked by a reporter if Spain's visit to Washington, DC was to request financial assistance, Saez de Santamaria said the trip had already been scheduled months in advance and that she took the trip as an opportunity for all parties to hear about the enduring sacrifices the Spanish government and the Spanish people are facing everyday in order to come out of the financial crisis as well as to help strengthening the Europe's common currency.
    "It is a coincidence that I had already scheduled this trip months ago but nonetheless this trip has turn out to be an opportunity for those who make decision in different levels could learn about the important efforts that the Spanish people is enduring to get out of this crisis and at the same come out strengthen. So, although away from the previous scheduled agenda I have taken advantage of the opportunity to have the voice of our country heard, especially about how concerned the Spanish people is to get out of this crisis and at the same time help the Euro to come out also from this crisis is living at the moment," Santamaria added.
    A government source told Reuters this week that Spain would likely recapitalize Bankia (BKIA.MC), Spain's fourth largest lender. The bank has asked the government for 19 billion euros to cover exposures to real estate and potential losses on repossessed property.
    The Spanish government is now required to lay out its plans for refinancing the lender by issuing new debt and possibly drawing cash form the bank restructuring fund and Treasury reserves.
    The U.S. Treasury Geithner and Saenz de Santamaria discussed the Spanish government's plans to strengthen its financial sector as well as the "significant progress" that Spain has made on fiscal and structural reforms.
    "The treasury secretary pointed out that we are working toward the same goal and a solution for the banks must be found because the problem is not a problem per se of Spain as a nation. In a particular time our financial system has had a set of necessities as such as other countries have had them before. This is an issue that it is well known here and it is similar to other European banks needing the same at this moment," Santamaria said.
    Europe's sovereign debt crisis has intensified in recent weeks over the health of Spain's banks and uncertainty about whether Greece will remain in the euro zone.
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