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IMF says it is not preparing a bailout for Spain
The International Monetary Fund says it has not been asked by Spain for a bailout and has not begun preparing one.
IMF spokesman Gerry Rice spoke Thursday, as Spanish Deputy Prime Minister Soraya Saenz de Santamaria flew into Washington for talks with IMF Managing Director Christine Lagarde and U.S. Treasury Secretary Timothy Geithner. Rice was discussing how Spain can finance an overhaul of its banking sector.
The government nationalized a major bank earlier this month. It now says it will need to inject $23.6 billion in public money into the bank ' more than twice what the government had estimated.
Doubts over how recession-hit Spain will handle the bailout have sparked concerns that the country will soon follow Greece, Portugal and Ireland in asking for financial assistance.