- No final decision has been made to request bailout
- No decision expected before Sept 12 at the soonest, EU finmins meet Sept 14/15
- Preferred option is EFSF buying Spanish bonds on primary market, ECB buying on secondary
- Discussions are held at technical level. focus on conditions and monitoring of aid
- Spanish banks unlikely to get emergency liquidity line before the end of September
Remember, Draghi said that Spain must request a bailout and agree to the conditions before the ECB will buy bonds. Some had expected a formal bailout request to come as early as tomorrow after a Spanish cabinet meeting.
