Bank bailout fails to ease Spain concern

Even as eurozone finance ministers unanimously approved on the 20 July 2012 a loan package of up to €100bn to repair the situation in the Spanish banking sector, a surge in the country’s bond yields suggested that doubts about its financial position were rapidly mounting.

Any positive sentiment from the eurozone announcement was undermined as Madrid on revised its growth forecast for 2013 downward.

Spain’s risk premium shot to a new record high on the 20 July 2012 after officials in Valencia formally asked the central government for funds to help pay the region’s surmounting bills, including the high prices of prescription drugs.

ESO: Background information: Bundestag approves Spanish bailout with large majority http://www.europeansources.info/record/bundestag-approves-spanish-bailout-with-large-majority/

ESO: Background information: Spain bows to ‘bad bank’ idea / Eurozone draws up Spanish aid blueprint / Spain given extra time to cut deficit / Spain pressed to inflict losses on savers http://www.europeansources.info/record/spain-bows-to-bad-bank-idea-eurozone-draws-up-spanish-aid-blueprint-spain-given-extra-time-to-cut-deficit-spain-pressed-to-inflict-losses-on-savers/

BBC News, 20.7.12: Spain: Eurozone deal fails to ease concerns http://www.bbc.co.uk/news/business-18921663

Deutsche Welle, 20.7.12: Spain struggles to cope with empty coffers http://www.dw.de/dw/article/0,,16112838,00.html

El País, 20.7.12: Risk premium tops 600 for first time as Valencia asks for rescue funds http://elpais.com/elpais/2012/07/20/inenglish/1342794548_027084.html

EUObserver, 20.7.12: Spanish bailout deal to be sealed amid protests http://euobserver.com/19/117022

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