Soon after the Spanish government announcing a €19 billion ($23.78 billion) bailout of troubled Bankia SA, the country’s 10-year bond yield rose 0.18 percent point to 6.47%, putting the Spanish sovereign bonds under heavy pressure. The Spanish debt insurance costs have pushed to a fresh records and five year credit default swaps have widened 0.1 percent to 5.57%. Nationalization of Bankia has darkened the sentiments in the market, as the announcement raised question whether the cash-strapped Spanish government can finance Bankia without international help. Bankia is the third largest lender in Spain, which is currently saddled with billions of Euros…
Impoverished Spain Bails out Cash-strapped Bankia
Vikas Shukla
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Vikas Shukla is a technology reporter. He has a strong interest in gadgets, gizmos, and science. He writes regularly on these topics.