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Spain formally requests loan for troubled banks

MADRID — Spain has made a formal request for a loan to help clean up its troubled banking sector, Economy Minister Luis de Guindos said Monday.

The country has yet to specify how much of the 100 billion euro, loan package offered by the 17 countries that use the euro it will ask for. De Guindos said the figure will be made known July 9 when Spain and its single currency partners reach agreement on the terms of the loan.

Last week, two international audits said that Spain’s banks could need up to 62 billion euro to survive if the economy were to suffer extreme deterioration.

Spain earlier this month finally admitted that some of its banks were in severe trouble owing to the build-up of toxic assets following the collapse of the country’s bloated real estate sector after 2008.

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