Spain’s bond yields exceed 7% record high since July 9
Fri Jul 20, 2012 2:36PM
The alarming increase comes as the Eurozone finance ministers are expected to approve up to USD122 billion (100 billion euros) in funds, in order to recapitalize the country’s weakened banks and bail the country out of its deteriorating financial crisis, though the details of the deal indicate that much of the fund will not come immediately.Spanish lenders need over 100 billion euros in order to control the devastating damages caused by the real estate bubble burst roughly five years ago in 2008. Spain is now in a catastrophic financial situation similar to those of Greece, Ireland and Portugal, which have been forced to seek international bailouts shortly after their bond-yields exceeded the seven percent threshold.
The EU member state has been struggling with its ailing economy since the country’s collapse into recession as the result of the global financial crisis roughly five years ago.Various EU member states have been struggling with a deep economic stagnancy since the bloc’s financial crisis began about five years ago, forcing some of the most affected nations to adopt unbearable austerity measures to be eligible to get the EU bailouts. MY/JR/SS