Spain PM Reassures Holders of Spanish Debt

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Hi, I'm Saijal Patel from CNBC and you're watching "Asia Market Daily".

CNBC has learnt the Spanish leadership is talking to sovereign wealth funds and major investors, about pumping new capital into the country.

This comes on the back of new measures announced by Prime Minister Jose Luis Zapatero, to attract investment.

Among them, privatizing two airports as well as the lottery, as Spain works to insulate itself from the contagion effect of Europe's spreading debt crisis.

Speaking exclusively to CNBC's Maria Bartiromo, the Prime Minister reassured holders of Spanish debt.


(SOT) Jose Luis Zapatero, Prime Minister of Spain

"Absolutely yes. It's been a tradition of Spain's public debt, our treasury bonds, I think, is one of the top rated Treasurys in the world today. And we're going to keep that above and beyond everything else. There's a strength there, despite what anybody says, no matter what they say, that's the way things are. And the good investors, those investors that have always worked with us, with Spain's public debt know that. And that is the guarantee of the Spanish government."

Maria Bartiromo: You're looking at measures to make the economy more competitive. You have announced privatization and you said that the regional savings and loans, the activity in terms of consolidation will continue. Can you categorically say that the banking system in Spain is healthy? And well capitalized?

(SOT) Jose Luis Zapatero, Prime Minister of Spain

"Definitely. It's not going to be healthy and well capitalized, it's doing its homework it's still doing its homework and on top of that, it will be one of the most attractive financial systems for investment. It will be one of the most efficient and the most profitable systems. We were two or three years back and we still have that core strength and that ability to reform as we have to reform. And therefore all investors need to feel reassured about that, our system has guarantees behind it an ability to carry out reforms. It has modern legislation as a framework and strength that will allow us to get to Basel III in a reasonable period of time."

Maria Bartiromo: When would you expect growth once again?

(SOT) Jose Luis Zapatero, Prime Minister of Spain

"There are some reports, analysis reports from the IMF — I read one yesterday from JPMorgan, too, those reports saying with the implementation of the reforms that under way now in Spain, 2011-2012 will be years when Spain will become one of the most attractive countries for investment in the securities market. And the IMF said that Spain is — could be one of the countries recording most growth, or highest growth rates in 2012 or 2013 in the whole of the European Union.


Thanks for watching "Asia Market Daily".

I'm Saijal Patel from CNBC.

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