MADRID, Feb 13 (Reuters) - The Spanish government is closely watching moves by neighbouring countries to recapitalise their banks, something which Spain has not yet done but says it may do if necessary, Economy Secretary David Vegara said on Friday.
The comments follow statements by Bank of Spain Governor Miguel Angel Fernandez Ordonez on Wednesday that he did not rule out government intervention in a Spanish bank, although such a move was not currently necessary.
"The situation is changeable. We recognise and can see what is going on around us and logically the government has wanted to keep within its reach a tool which, if it must be used, will be used," Vegara said during a conference in Madrid.
He cited recent moves by Holland and Britain to protect bank assets.
Up till now, Spain has offered to buy up to 50 billion euros ($64.58 billion) in investment grade debt from its banks and guarantee up to 100 billion euros in bond issues this year to increase liquidity.
"European governments have agreed to back issues in wholesale markets through guarantees and, in some cases, recapitalisation of the institutions. The Spanish government is doing the first and has kept its options open on the second," Vegara said. "If it hasn't been authorised, it's because it hasn't been necessary."
Spanish banks have avoided asset right-downs like those carried out by peers in other countries.
Government policy has focused on guaranteeing its banks have sufficient liquidity as the global financial crisis squeezes interbank credit lines.
There has been speculation the government is considering state intervention to put Spain on a level footing with other European countries that have taken stakes in their banks.
Economy Minister Pedro Solbes on Wednesday reiterated his opposition to converting Spain's Official Credit Institute into a national bank that would supply credit direct to borrowers.
At present, ICO channels state credit to private banks which in turn distribute loans to firms.
(Reporting by Andrew Hay; Writing by Paul Day; Editing by Ron Askew)