“The programme remains on track”
The European Commission and the European Central Bank following the conclusion of the second review of the financial assistance programme for Spain stated that “the programme remains on track”.
The conclusion of the second review mission to Spain shows that the stability and the repair of the Spanish financial sector are underway. Concretely, market access by the Spanish sovereign and private borrowers has improved, as foreign investors have returned to Spanish markets. “Persistent efforts are needed to overcome the significant challenges that face the weakest parts of the banking sector, warranting decisive policy action, as outlined in the Memorandum of Understanding” said the EC and ECB. Bank recapitalisation and restructuring is proceeding, and the asset management company SAREB is running. In parallel, the Spanish authorities have been taken important measures to reinforce the supervision and regulation of the sector.
“These are essential steps to creating the responsible and healthy financial sector Spain needs in order to ensure access to credit for households and businesses. This process must be completed on schedule and implemented rigorously.
The welcome fall in sovereign funding costs in recent months is a reflection of investors' growing confidence in the measures taken in Spain and in the eurozone to address both the symptoms and the causes of the crisis. To build on this important progress and ensure that these benefits filter through into the real economy, it will be essential for Spain to maintain its focus on both sound public finances and determined implementation of economic reforms, in line with the EU's Country-Specific Recommendations” said Vice President Rehn.
The next review is foreseen to take place in May 2013.
No comments:
Post a Comment