IMF offers flexible aid for Spain

FXstreet.com (Barcelona) - IMF head Christine Lagarde expressed her support for Spain in an interview for Le Figaro newspaper published on Wednesday, assuring that the organization could help the distressed country in a more adequate way.

She explained that there are different means of providing aid: "If Spain wants it, we could help in diverse ways, for example by simply auditing and monitoring reforms negotiated with its European partners without the IMF participating in financing." She added however that the IMF could play a role in financing as well.

As far as the Spanish bank recapitalization process is concerned, Lagarde said that the IMF was satisfied with the steps taken so far and encouraged the country's government to follow this path. She also added that an IMF intervention would be compatible with that of the ECB as both institutions operate on different levels.

Finally, Lagarde urged Spanish President Mariano Rajoy not to delay the bailout decision further, emphasizing that European officials should not postpone actions due to electoral reasons, in a clear allusion to the Spanish government possible hold back in wait for the passing of the Catalan and Basque elections.

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