European Stability Mechanism confirmed to Spain the possibility of early redemption of debt in the amount of 1.300 million euros in the account of the previous received capital to rescue the banking system. “This initiative of the Government of Spain will be a positive signal for the economy,” said the director of the European Stability Mechanism, Klaus Regling.
European Stability Mechanism (ESM) this week approved a voluntary early repayment of Spain of 1.300 million of the total loan obtained for the rescue of national banks. This happens for the first time when a country from the euro zone, which used funding of European Union, has requested the opportunity to early repayment of the loan before the deadlines.
ESM – the European Stability Mechanism – is an intergovernmental European organization established in 2012, the purpose of which is to maintain financial stability and Monetary Fund in the European Union by providing financial assistance to Member States of the euro area in difficult situations.
“The Spanish initiative confirms that the restructuring of the banking sector in the country, with the support of funding ESM, was held successfully,”- has welcomed Regling, adding: “Spanish banks were able to take a firm and strong position, the economic growth has returned and the investors increase their confidence in Spain”.
As announced by the government, ESM – the European Stability Mechanism – received on June 27 the request of the Spanish authorities about the possibility of prepayment. This request, according the received program of financial assistance, should receive formal approval from the Council of Directors of the ESM.
Early repayment will be made in cash, obtained after a successful sale of shares in the restructured national banks.
The last part of the loan issued by ESM to Spain, is scheduled to be paid for late 2027. From December 2012 to February 2013, the Spanish government has received from the European Stability Mechanism the 41.300 million euros, which were mainly intended to recapitalize the banking sector.
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