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Spain situation 'very difficult'


Spain's prime minister has said it is "very difficult" for the country to get funds.

He was speaking amid growing fears about the Spanish banking sector, after Bankia asked the government for 19bn euros ($24bn, £15bn).

The premium investors demanded for holding Spain's 10-year bonds over its German equivalent rose to a record 5.05 percentage points.

But Mr Rajoy said the banking system did not need an international bailout.

"There will not be any [European] rescue for the Spanish banking system," he said, but he backed calls for the European rescue fund to be able to lend to banks directly.

Last week Bankia, which was formed from the merger of several struggling regional lenders, requested a 19bn-euro bailout, which was a much bigger amount of help than had been expected.

"We took the bull by the horns because the alternative was collapse," said Prime Mi

Added: May-28-2012 Occurred On: May-29-2012
World News
Tags: spain, euro, zone, crisis, economy, EU, social, unrest, polls, greece, france, italy, germany
Location: Spain (load item map)
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