Spain to get from the EU partners billion - still losing investors' Karen Millen
confidence in the country: The government in Madrid has to pay for new debt interest record. The business newspaper "Expansión" already speculating whether new funding will be needed soon.
Madrid / Athens - The fear of investors prior to a new escalation of the euro crisis is increasing. The nervousness in financial markets has driven the ten-year Spanish bonds at record highs. The papers were remunerated on Tuesday afternoon in the peak at around 6.9 percent. That means paying the government in Madrid has the record interest debts.
It had its EU partners Spain just support for Karen Millen Dresses his ailing banks pledged - and up to one hundred billion euros. The relief that lasted at least one day, on Monday the stock market had reacted with the world price jumps. From the euphoria is now not much left Spain is once again the focus of the euro crisis.
Bad news coming from Italy. Karen Millen Dress The yield on Italian government bonds also rose significantly and was 6.3 percent. The euro slid to a daily low of 1.24 dollars, the Dax turned into the red. After the leading index was temporarily dropped below 6100 points, but he went with a gain of 0.3 percent for 6161 points from the market.
Rating agency Fitch downgrades 18 Spanish banks Karen Millen down
Reason for the growing panic in the markets is mainly traders said the upcoming election in Greece. Sunday is expected to decide whether the opponent of the austerity program to win the upper hand and thus threatens secession from the euro-zone.
In addition, many investors doubted the fact that Spain gets alone with the planned funding for the banking sector's debt crisis under control. The business newspaper "Expansión" According to the effectiveness of aid is highly controversial even among experts, the paper subtitled: "A new life is necessary?" The second time, writes the "New York Times" on its opinion pages, but would have to not only the banking sector, but like Spain are even saved.
The rating agency Fitch has, however, the creditworthiness of 18 other Spanish banks downgraded. The potential for the loan portfolios of some banks could deteriorate further, the rating agency justified the decision on Tuesday. This was especially true for banks that would have given much credit to the construction or had no solid basis.
Among the 18 banks involved, the third largest financial institution CaixaBank, whose credit rating two notches to BBB is lowered, was the fourth largest bank and Banco Popular, which was one degree downgraded to BBB-. Bankia, which should be supported with 23.5 billion euros from public funds, was also downgraded by one grade to BBB. On Monday Fitch had downgraded the creditworthiness of the two largest Spanish banks, Santander and BBVA.
After the emergency loans to banks in Spain and Greece wants to renegotiate its own billion dollar aid package - the Greeks call Spanish-saving conditions. But the chances of success are low. A spokesman for the European Commission on Tuesday dampened hopes relevant in Brussels: "Our position is unchanged: we expect to fulfill all commitments made by the Greeks," it said.
Meanwhile, Europe braces itself for a possible exit of Greece € after the election on Sunday. At the European level is therefore to advise on measures such as border controls to curb the threat of capital flight. Also discussed was a limit of cash withdrawal in the country.
If the Greeks choose on Sunday radical forces that terminate the agreement for the bailout actually, then the country would have no choice but to leave the monetary union. This would lead, according to experts, that the Greeks stormed their banks to bring their € before being converted into devalued drachmas safety abroad. Since 2009, according to the authorities for 80 billion euros were deducted from the Greek banks are currently being raised in Greece every day hundreds of millions.