German Finance Minister: Spain does not need financial aid

Spain does not need euro zone financial help because its problems stem from the banking sector and the country is already getting a loan to recapitalize its financial sector, German Finance Minister Wolfgang Schaeuble said.

"Spain needs no aid program," Schaeuble said as he arrived a meeting of euro zone finance ministers in Luxembourg, reiterating a point he has made repeatedly in recent weeks.

"Spain is doing everything necessary, in fiscal policy, in structural reforms. Spain has a problem with its banks as a consequence of the real estate bubble of the past years.

"That's why Spain is getting help with banking recapitalization. And of course Spain, like other countries, is suffering from the problem of contagion, speculation on financial markets... but Spain needs no aid program. That's what the Spanish government says again and again," he said.

The finance ministers, known as the Eurogroup, are meeting to discuss Spain's borrowing costs and its economic reforms as well as other eurozone related issues.

(Reporting By Annika Breidthardt; writing Jan Strupczewski)