The European Commission insisted Monday that Spain asked the IMF to contribute monitoring expertise to an aid programme agreed by eurozone finance ministers for Spain's financial sector.

According to the Commission, the International Monetary Fund will be part of a "Quartet" to conduct surveillance over Spain's finances -- with up to 100 billion euros ($125 billion) of loans for Spanish banks funnelled through a government body, the Fund for Orderly Bank Restructuring (FROB).

The role of the Washington-based IMF is politically sensitive in Madrid, with the Fund seen as pushing for the toughest austerity measures in previous, government bailouts for Greece, Ireland and Portugal.

Amadeu Altafaj, spokesman for EU economy commissioner Olli Rehn, said: "All members of the Eurogroup... including the Spanish authorities" had indicated during Saturday's video conference that they "wanted to have the IMF on board, to monitor, to have the benefit of their experience."

The Daily Star/Bangladesh/ 12th June 2012