El-Erian Explains Why Spain Desperately Needs To Avoid The 'Roach Motel' Of Outside Funding

TBI ^ | 06/06/12 | Mamta Badkar

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El-Erian Explains Why Spain Desperately Needs To Avoid The 'Roach Motel' Of Outside Funding

After months of resisting external aid, Spanish budget minister Cristobal Montoro said European institutions should help shore up the nation’s lenders.

In fact reports suggest that there is a plan in place that would allow Spain to recapitalize its weakest banks with help from European partners.

But in a Financial Times editorial, PIMCO's Mohamed El-Erian says there's a reason Spain had long avoided emergency European funding:

"So far, emergency European funding has been impossible to exit, like a “roach motel”.

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