The planned eurozone loan to Spain and the related collateral may be a burden on Slovakia's GDP of 1.06 percent or 1.22 percent, depending on whether Spain also provides collateral on the loan it gets, an analyst told the TASR newswire on June 11. The loan to Spain from its eurozone partner nations could be as much as €100 billion.
"We assume that funds in the upper region of the preliminarily approved aid will be provided to Spain, which means €80-100 billion," said Poštová Banka analyst Dana Špacírová. She explained that Spanish banks need €50-60 billion for their recapitalisation, as estimated by Fitch Ratings, while the proposal also counts on providing a safety buffer for the future. Slovakia's collateral is estimated to be about €1-1.2 billion, according to the analyst.
"I don't believe that this aid has the potential to resolve [Spain's] problems. I see Spain's main problem consisting in its inability to grow without increasing its debt," Kamil Boros, an analyst with X-Trade Brokers, told TASR.
Source: TASR
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
