PARIS (MNI) – The International Monetary Fund has firmly denied
reports that it is in talks, along with the European Commission, for a
financial aid package to fiscally-troubled Spain.

“I have a very simple line for you: There is no truth to these
rumors,” Simonetta Nardin, an IMF spokesperson told Market News

Her comment was in response to a question about a Spanish media
report Wednesday that claimed a E250 billion credit line was being
prepared to help Spain, whose banking system has been hard hit by a real
estate crash and whose sovereign debt spreads have risen to record
levels against the German Bund in recent sessions.

The European Commission “firmly” denied the report earlier today.

The report, published by the Spanish business journal El
Economista, said the EU, the IMF and the U.S. Treasury were conducting
talks with Spain aimed at providing a liquidity lifeline to the
beleagured government.

Nardin noted that IMF managing director Dominique Strauss Kahn will
meet Prime Minister Zapatero on Friday. “He is in Europe this week, and
is taking this opportunity to discuss global economic developments with
the Prime Minister, and to consult with him on developments in Spain,
including the government’s economic policies and reforms,” the
spokesperson said.

–Paris newsroom, +331-42-71-55-40;

[TOPICS: M$$EC$,M$S$$$,M$X$$$,MT$$$$,MGX$$$,M$$CR$]