World Bulletin / News Desk

Spain intends to ask for financial help to shore up its banking sector, Econonomy Minister Luis de Guindos said on Saturday, adding that the country's bank rescue fund FROB will be the mechanism used to channel funds to lenders.

De Guindos told a news conference that it was not yet clear which European bailout structure would be used, whether the European Financial Stability Facility or the European Stability Mechanism.

"The Spanish government declares its intention to request European financing for the recapitalisation of the Spanish banks that need it," De Guindos said.

He said the amounts needed would be manageable, and that the funds requested would amply cover any needs. De Guindos added that the numbers would be known after an audit of the Spanish banking system being carried out by independent auditors, due later in June.

The International Monetary Fund will have role only as an adviser, he said.