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Spain deal helps stability - Noonan

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Finance Minister Michael Noonan said the Spanish bank bailout would 'provide much needed confidence and stability'

Finance Minister Michael Noonan said the Spanish bank bailout would 'provide much needed confidence and stability'

Finance Minister Michael Noonan said the Spanish bank bailout would 'provide much needed confidence and stability'

Bailing out Spain's banking sector will not mean a better deal for Ireland on its debts, Finance Minister Michael Noonan said.

Spain is to seek eurozone aid for its banks worth billions of euros.

Mr Noonan participated in Saturday's Euro group teleconference.

"Today's announcement is a collective response by eurozone member states to assist in resolving the difficulties in the Spanish banks," he said.

"This announcement will provide much needed confidence and stability in the eurozone and this will be particularly important for Ireland's economy as the eurozone crisis has weighed on our economic growth over the past year."

He said the European authorities will provide up to 100 billion euros to fully recapitalise the Spanish banks and to provide a significant safety margin beyond the recapitalisation requirements.

The funds will be provided through the EFSF/ESM at the same interest rates which apply to funds provided to other programme countries.

Mr Noonan added: "The Spanish programme of assistance is providing funds for the financial sector and as such the conditionality of the programme will apply to this sector.

"Similar to existing programmes of assistance the European funds provided to Spain will be the responsibility of the Spanish sovereign."

PA