The second biggest lender in Spain is reporting that it could take up to 60 billion euros ($78 billion US) to bail out the country’s banks.
The results of independent stress tests of the Spanish banking system aren’t due to be released until September 28th but BBVA apparently obtained access to the information in advance. Continue reading
Spanish Prime Minister Mariano Rajoy has stated that he will not accept any outside conditions on bailout funds that could potentially save his nation’s economy.
“I am absolutely convinced that everyone will be reasonable but I insist that we haven’t taken a decision,” Rajoy said during a national television address. “I will look at the conditions. I would not like, and I could not accept, being told which were the concrete policies where we had to cut.” Continue reading
Catalonia, a region of Spain that makes up one-fifth of the nation’s economy, is requesting a new bailout of 5 billion euros to cover debts.
The news comes as Spain’s economy shrank even further according to official data from the second quarter of the year. The nation’s economy fell about .4% after the economy fell .3% in the first quarter of the year. It’s the third straight quarter where the economy has shrunk and the overall annual contraction in the second quarter on an annual basis is 1.3%. Continue reading
Three men suspected of ties to al-Qaeda have been arrested in Spain along with explosive material. Three other men have been arrested in connection to the weapons and explosives discovered after an operation by Spanish police.
Spain’s Interior Minister said the men are believed to have been planning a major attack in Spain or Europe. Continue reading
The president of the European Central Bank said they will do “whatever it takes” to keep the euro solvent bringing a run on various stock markets.
The Spanish Ibex share index jumped 6% on the news with the main share index closing up 5.6% The news also drew Spain’s 10-year bonds down .6% from the record high it had been maintaining for weeks. Continue reading
Germany’s AAA credit rating is in danger of a downgrade after Moody’s changed the outlook for the nation’s credit to negative. The move is a possible first step into downgrading the country’s overall rating.
Moody’s stated that the exit of Greece from the Euro is increasing and the increasing financial decline in Spain. A full bailout of Spain is considered to be more likely as the cost of Spanish bonds remains at a record high. Continue reading
Hundreds of Spanish firemen, police officers and nurses marched yelling through the streets Monday, denouncing as “robbery” the pay cuts enforced under Spain’s latest fiscal emergency plan. Continue reading
Spanish Prime Minister Mariano Rajoy announced the country’s sales tax would rise from 18% to 21% and that local governments would have their budgets significantly cut in an attempt to appease Eurozone regulators after the country requested a financial bailout.
Rajoy’s plans state it should save the country $80 billion. Continue reading
Spain finally made a formal request for euro zone rescue loans to bail out banks overwhelmed with bad debts on Monday. The euro and bank shares fell mainly on speculation that the European Union summit this week will not act decisively on the crisis.
Spanish Economy Minister Luis de Guindos requested 100 billion euros in a letter sent to the Euro group chairman. The final amount of assistance could be less than the requested total. Continue reading
Eurozone ministers are gathering in Luxembourg to discuss plans to lower government borrowing costs as Spain’s bond yields hit a 16 year high.
The government paid a yield of 6.07% on five year bonds up from 4.96% in May. The 2.2 billion euros raised will fund 61% of the Spanish government’s operations and debt payments for the rest of 2012. Continue reading