Spain to repay $1.776-bn of bailout fund

Spain will repay 1.3 billion euros ($1.776 billion), part of the bailout sum given by the European Union (EU) in June 2012, Deputy Prime Minister Soraya Saenz de Santamaria said Friday.

Saenz de Santamaria made this announcement after the cabinet meeting, where she told reporters that the government wanted to "reinforce confidence in Spain's economy", Xinhua reported.

She announced two measures in order to achieve this goal -- firstly, the government will begin to repay in advance 1.3 billion euros of the 41.3 billion euro bailout fund.

EU provided Spain a credit line of up to 100 billion euros in June 2012 so that the country could recapitalise its weak banking sector.

"Our economy can do this," Saenz de Santamaria said. "This is a way to reinforce confidence in our country," she added. She, however, did not say when the payment would be made.