High risk premium for Spain

Source: Marketwatch

Cristobal Montoro, Spain's Treasury Minister, said that taking into consideration the massive borrowing expenses faced by Spain, the country cannot gain access to the private bond market. As the risk premium is drastically high, it prevents Spain from entering the markets in case of the necessity to refinance debt. Montoro believes, since the banks in Spain do not require a considerable sum for recapitalization, the European Institutions should aid the country to generate the necessary financing.

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