MADRID—Spain’s Budget Minister Cristobal Montoro on Tuesday urged euro-zone partners to act faster to help support its enfeebled banks, saying that the government has effectively lost access to capital markets because of steep risk premiums demanded by sovereign bond investors.
In making this dramatic admission, Mr. Montoro joined recent calls by the Spanish government for direct aid from European Union institutions for Spanish banks as the government hopes to avoid a full-blown bailout package. The matter has gained urgency after Madrid was forced into a €19 billion ($23.75 billion) rescue of lender Bankia SA, while the government’s borrowing costs have surged to record highs with yields on Spanish 10-year bonds staying above the 6% mark for the third straight week. Midday in Europe, the yield was at 6.37%. By comparison, the yield on the German 10-year bond, considered a haven for investors, was at 1.20%.
cj — So do the Spanish honestly think I am inept enough and dumb enough to loan them money that will never be repaid? Or do they simply think I owe them something? This is also true for American Linerals. They think my entire life should be devoted to their squandering of my wealth on their silly ass “social programs,” i.e. welfare, given to lazy ass idiots.