FORMAL REQUEST: Spain officially asked the European Union on Monday for a loan to help clean up its troubled banking sector.
NO FIGURE: Spanish leaders haven’t said how much they’ll seek from the $125.4 billion ($100 billion euro) loan package offered. Two international audits last week found up to $77 billion (62 billion euro) could be needed.
LONG TIME COMING: The request comes after Spain admitted some of its banks are in severe trouble because they built up bad loans and other problem assets after the country’s bloated real estate sector collapsed. Spain wants the loans to go directly to the banks so the government isn’t responsible for repayment.
