Spain Following Greece Footsteps?

Todays Financial Times front page: Spanish banks break ECB loan record.

Spanish banks borrowed €85.6bn ($105.7bn) from the ECB last month. This was double the amount lent to them before the collapse of Lehman Brothers in September 2008 and 16.5 per cent of net eurozone loans offered by the central bank.

Financial Times article: Turmoil in Spain sparks fear of crisis spreading.

This week the Spanish government and BBVA, Spain’s second biggest bank, admitted what investors have known for weeks: the country’s banks are on the brink of a funding crisis because their access to international markets is virtually closed.

It was similar with Greece, there are not many examples when this kind of path was reversed.


This entry was posted on Wednesday, June 16th, 2010 at 3:17 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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