Spain outlines path to bailout request: report (by Barbara Kollmeyer)

MADRID (MarketWatch) -- Spain is ready to make a formal request for aid, allowing the European Central Bank to buy its sovereign debt, but is delaying an announcement due to concern about the effect on other euro-zone members, media reports said Monday, citing an unnamed Spanish official. The comments were made in a briefing to international press Monday evening. But rather than seek immediate aid from the European Stability Mechanism bailout fund, Spain is considering requesting a credit line in order meet a requirement for the ECB to buy its bonds, the report said. However, concern that other debt-challenged euro-zone nations -- Italy in particular -- might see their own borrowing costs rise has prompted delay from Madrid, the report said. The official said he expects no resolution to the matter this week, the Wall Street Journal reported in its online edition.