Spain's economy minister has dismissed speculation that the country is about to seek a bailout of its bank sector.

There have been reports in the past few days that Spain was seeking an immediate bailout from eurozone funds.

However, according to Luis de Guindos, no decision would be made until audits of the banks are completed, possibly by the end of June.

He said an audit by the International Monetary Fund of Spain's banks is due next week, with further independent reports to be completed about two weeks after.

Yesterday, Spain's finance minister said the credit markets were effectively shut to his country, inflaming worries that the country would be forced to join Greece, Portugal and Ireland and seek outside help.

Spain has to find at least 80 billion euros to strengthen its banks' capital buffers.