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EU’s Rehn: Spain unlikely to need 2nd credit line

October 1, 2013

PARIS (AP) — The European Union’s economic affairs commissioner says Spain likely won’t need another credit line for its troubled banks after the current one expires next year.

Spain has avoided a comprehensive international bailout but did receive a 100 billion euro ($135 billion) credit line to shore up its banks. The country has so far tapped 40 billion euros.

Olli Rehn told reporters in Paris on Tuesday that a review of the loan program this week showed the country was on track with the reforms promised in exchange for the loan.

He cautioned that he wanted to wait for the European Central Bank’s upcoming stress tests to confirm that Spain’s banks are returning to health. But he said he thought it unlikely Spain would need to ask for more help.

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