Summary for non-specialists  

This report provides an assessment of the progress made by Spain with respect to its Financial Assistance Programme for the Recapitalisation of Financial Institutions in Spain, based on the findings of a joint EC, ECB, EBA and ESM mission to Madrid during 15-26 October 2012.
The IMF participated in the meetings as part of its independent monitoring. The mission found that the reform of the financial sector is on track. The ambitious policy conditionality of the programme has so far been met in a timely and high-quality manner. It will be important to maintain the momentum in the coming months as major challenges lie ahead, in particular the effective restructuring of banks and the set-up of the Asset Management Company (AMC).