As Spain Strains Under Financial Pressure, France Calls For Bank Rescue To Come …
As Spain Strains Under Financial Pressure, France Calls For Bank Rescue To Come Fast
France's finance minister and Spain's economy minister are calling for a swift implementation of the rescue plan for Spanish banks.
In June, the 17 countries that use the euro agreed to lend Spain up to €100 billion ($121 billion) to save the banks. But the deal has intensified concerns about the country's debt levels, since the government will have to repay those loans if the banks cannot.
In response, investors have been demanding high interest rates, or yields, to lend to the country.
After a meeting in Paris, Finance Minister Pierre Moscovici and Economy Minister Luis de Guindos said Wednesday that they don't think Spain's borrowing costs reflect the country's financial position.
Both men said they were confident the rates would fall back once investors were confident that the country's banks were getting the support they need.