SOME of Spain's small regional savings banks may need assistance but pose no threat to the success of the country's new austerity measures, the deputy managing director of the IMF said yesterday. “Certainly the caixas in Spain and other places have had some difficulty,” John Lipsky told Reuters. “The size should be kept in mind. There is no reason to think these issues would derail the broad pace of policy reform.” He added, “Certain institutions may require specific steps to address their problems.” The fund has thrown its support behind Spain's hastily imposed austerity measures and labour market reforms, helping to dispel worries the country could have to tap a 500 billion euro emergency fund for a Greek style bailout.

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