James BryceSPAIN will become the fourth eurozone country to be bailed out when it officially asks for financial assistance on Saturday.
An emergency summit will be held between the 17 member states to finalise the details of the rescue package, which rating agency Fitch claims will cost €60 billion.
It comes after Fitch slashed Spain’s credit rating by three notches on Thursday, leaving it just above junk status.
Details of the deal to bailout Europe’s fourth biggest economy are expected to be announced shortly after the conference call, despite Spanish officials denying a deal is imminent.
Prime Minister Mariano Rajoy has come under increasing pressure from European leaders to seek financial help for its banking sector, which has suffered heavily with debts linked to the failed property market.
“The government of Spain has realised the seriousness of their problem,” said a senior German official.
Tell us something we didn’t know lol.
Good timing to put it on during the football weekend.
This Spanish financial Banking fiasco was seen and discounted by the financial Markets almost one YEAR AGO. There should be a legal requirement that ALL politicions MUST READ the Financial Times or Wall Street Journal or Investors Daily at least once per week… or if “reading impaired” they must WATCH CNN tv before speaking to the Public Taxpayers.
This has been on the cards for so long but like with everything else the stupid Spanish Government deny everything and continue to have this attitude of, oh we will deal with it tomorrow uhhu and now look what is happening…they are still denying it’s as bad as it really is so yeah self inflicted.
Ahh and now they have their bailout but lets see how long it lasts them eh!!!
correction Ireland 60 bn fore housing bubble: then Spain 500 bn. + correction for all the second homes of north EU that are recession vulnerable. 100 Bn is CRAP. Dutch morgage deduction revomal is catastrophe good for 600bn. No more dreams for the Dutch.. then the go: braindrain/ runaway and leave with debt. now already 1/3 dutch houses +300k with rest debt.
North Europe needs PLAN B. Alternative union of the willing. No more lending without hard collataral. Lets build HANZE/ North Euro political union and every one can yoin…. good plans drive out the bad……
There is light at the end of the tunnel, it might take years but Spain will get back on its feet again as people like me who live in a scottish northern isle needs to get to the med at least once a year for some real vitamin d!!!