IMF says Spain's banks making good progress

Associated Press
A homeless man sleeps on a piece of cardboard next to cash dispenser, in Pamplona, northern Spain, Tuesday, Oct. 23, 2012. Spain's economy continued to shrink in the third quarter, contracting by 0.4 percent compared with the previous three months, according to central bank estimates Tuesday that will increase pressure on Prime Minister Mariano Rajoy to seek financial help from Europe(AP Photo/Alvaro Barrientos)
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MADRID (AP) — The International Monetary Fund says Spain's banking sector has made good and timely progress in meeting the terms of its bailout.

The IMF is monitoring the Spanish government's progress in reforming the banking sector, which has been badly hurt by a property sector collapse in 2008. Spain agreed to the reforms in exchange for a €100 billion ($129 billion) loan from fellow eurozone nations to help prop up its banks.

The IMF report says that important progress was made in reforming the financial sector and "all deadlines established in the Memorandum of Understanding agreed between the Spanish and European authorities have been met."

The report said Friday that "capital shortfalls need to be quickly made up" and "non-viable banks promptly wound down."

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