BERLIN--The euro zone's bailout fund is considering drafting a provisional credit line for Spain that Madrid could tap if it needed to do so to recapitalize its banks, the German newspaper Die Welt reported on Tuesday.
The newspaper said that under the plan -- one option being considered -- Spain could later draw the full loan or only a portion of the amount. Die Welt says the credit line is a compromise between Madrid's refusal to tap the European Financial Stability Facility and Berlin's strong encouragement for Spain to do so.
Spain is preparing an audit of its banks that will not be completed until later this month. A provisional credit line drawn up now would provide an emergency source of cash in the event of market turbulence before completion of the audit, the report, due to be published on Wednesday, said.
Write to Berlin Bureau at firstname.lastname@example.org
(END) Dow Jones Newswires
June 05, 2012 13:12 ET (17:12 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.