MADRID (AP) — Spain is pushing to have European rescue funds go directly to its troubled banks, rather than through the government, so that they do not add to the country’s already heavy sovereign debt load and push it closer toward financial collapse.
The country has access to as much as €100 billion ($125 billion) for the banks, but current rules say the government needs to take responsibility for them. That has raised fears that, should the government not be able to get the money back from its banks, it will be overwhelmed by the new debt and need a bailout of its own.
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