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Bail out.

SSaline13y ago
What is meant by EU keep granting bailouts to various countries ( such as SPAIN),
If bail out means to pay off the debt of Spain so from where does the EU gets money to do this bail out?
John MoffatJohn MoffatTutor13y ago#1
Bail out means that the European Central Bank and the IMF are lending money to Spain so that they can repay their existing borrowings when they fall due. They will still charge interest.
The ECB borrows money from other european countries, the IMF borrows money from countries all over the world.
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