Spain’s Prime Minister Mariano Rajoy denied Tuesday the country was planning an “imminent” demand for a sovereign bailout from the eurozone to end its financial crisis.
Asked at a news conference whether a bailout demand by Spain was “imminent”, Rajoy replied: “No,” without elaborating.
Market analysts say Spain is likely to request a full sovereign bailout from the eurozone within days or weeks to stabilise its public finances.
Rajoy shrugged off media reports that his government was set to formally request a bailout as soon as this weekend.
“I cannot be replying to leaks every day,” he said. “But if you think what I have to say is more important than a leak, then I say no.”
Spain is required to make a formal demand for help in order to trigger the release of eurozone rescue funds and supportive action by the European Central Bank.
In the past week, Spain has unveiled an austerity budget for 2013 and revealed a lower-than-expected price tag for saving its banking system, two moves considered likely to clear the way for a full bailout.
Spain will be on the agenda of eurozone finance ministers at a meeting on October 8 and again for a European Union summit October 18-19.
Rajoy passed the tough budget measures in the face of mass street protests, under pressure from European authorities to cut Spain’s deficit and restructure its economy.
Spain PM denies bailout call 'imminent'
