Despite its economic situation, Spain hopes to reassure investors that they do not need to be bailed out like Greece. Spain's borrowing costs are at an all-time high and its record 7.6 percent yield is not going to attract any investors.
Adding to its already mounting problems, the Catalonia region is asking the government for financial support. Spain claims they've been reassured by France and Italy that both countries will indeed support Spain's struggling economy. According to Spain, the aid agreed upon by the three countries involves lending banks in Spain without attempting to add to the debt of government.
But Spain and Italy have denied this. The two nations deny any accord with Spain.
France's European Affairs Minister Bernard Cazeneuve said via the BBC: "It makes no sense to say that. We are following the decisions taken at the European summit and are working on them"
Spain needs aid quickly as stated by Spain's foreign ministry. The country's ministry believes that "speed is an essential condition for the success of any European action."
Spain's high yield is a result of investors' shaky confidence in the market. Since the struggling European economy has had minimal effect on Berlin, Germany may have to play a huge role in aiding Spain.
The BBC reports: "Moody's warned that Germany and other highly-rated countries may have to increase levels of support for countries such as Spain and Italy, who have not asked for a Greek-style bailout but who are struggling with high debt levels."
Spain has already received an estimated $125 billion in loans for its banks. So far, banks may need more loans as they are expected to make use of a new public fund worth close to $22 billion.
Markets fled to safe haven bonds amid concerns Spain would be seeking an international bailout after some of the country's regional authorities asked for central government aid
Spain Bailout Fears Grow
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