Any delay in Spain requesting external aid would result in higher bailout costs, European Central Bank Governing Council member Ewald Nowotny told reporters on Friday.
The more you delay the more expensive it gets, Nowotny, who is Austria's central bank chief said in Vienna.
According to reports, Spain is likely to request aid from European countries, over the weekend, to shore up their troubled banks. Eurozone finance ministers would hold a conference call on Saturday to evaluate the situation and talk on support package.
EU reportedly says that it has sufficient tools in case Spain comes up with aid request.
An International Monetary Fund report scheduled to be published on Monday is likely to put the cost of refinancing troubled Spanish banks at around EUR 40 billion.
At present, the central bank is not planning a revival of SMP bond-buying program and long-term repo operation, Nowotny said.
Resisting calls for a rate cut, the ECB on Wednesday maintained its key interest rate at 1.00 percent, which is already at a record low level.
by RTT Staff Writer
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