Germany says outside inspectors will supervise the €100bn emergency loans for Spanish banks
Loans will also carry preferred status to Madrid's existing sovereign debt, says finance minister
He believes it would be more efficient for loans to be made by the European Stability Mechanism
Madrid had signalled a preference for a less obtrusive rescue
Germany has said that outside inspectors will supervise the eurozone’s €100bn emergency loans for Spanish banks, just like other financial bailouts over the past two years, despite Madrid’s insistence that it would escape the onerous conditions imposed on Portugal, Ireland and Greece.
The loans will also carry preferred status to Madrid’s existing sovereign debt, Germany’s finance minister said, ensuring Berlin would get its money back in the event of a future default.
“There will be a troika [the team of outside inspectors from the European Union, European Central Bank and International Monetary Fund] and it will make sure the programme is being implemented,” Wolfgang Schäuble said on Monday.
A spokesman late