There will be no bailout for Spanish banks

"There will be no bailout for Spanish banks". These are the words spoken today by the Prime Minister Mariano Rajoy at a press conference in Madrid. Compared to the rise of the bono-bund spread, which today reached the record sum of 513 points, Rajoy stated that this has nothing to do with the situation of insecurity surrounding Bankia. The PM said that "the decision concerning Bankia and the general financial system has brought some calm, everybody knows that Spain is carrying out the necessary reforms to reduce its deficit, but the doubts surrounding Greece are not helping", he added. The PM reminded that the nationalisation of Bankia "clears two objectives: to guarantee savings and clients' deposits and reform the firm and gain the investors' trust once again." Concerning the danger announced by Catalonian president Artur Mas, Rajoy assured: "Catalonia is not bankrupt and no firm in Spain is bankrupt. What we have is a credit problem in order to pay debts. We have tried with the plan to close the pending debts with the suppliers, who will start retrieving their money on Friday". " We have set up an ICO line for autonomous communities to which they can take advantage of, the only condition is that they must all pull the wagon, reducing the deficit and containing expenses. We will help the communities, because it is a duty of the Spanish government. We will not let any region collapse, because that would signify the failure of the whole nation," he added.