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Spain Bank Rescue "Bungled"
President of the World Bank, Robert Zoellick, has said how the reaction of the financial-market to the rescue plan for Spain’s banks shows that it was bungled.
The announcement of a €100 billion-euro bailout for Spain failed to stop a rise in Spain’s borrowing costs to a euro-era record last week.
With so much money allocated , “to have that being a negative story is amazing,” Zoellick told a panel discussion in the Mexican resort of Los Cabos today. “It’s because the execution was extremely poor.”
International Monetary Fund Managing Director Christine Lagarde told the same panel that Spain needs to do more work on formulating its request for aid.
“There’s clearly work in the making that need to be done,” for instance in terms of giving exact numbers, Lagarde said. The IMF will monitor the package, being “honest and candid” she said.