MADRID (AFP)
Spanish borrowing costs have soared to a euro-era record high on a
market beset by doubts over a vast rescue loan for the country's banks
and by fears of a Greek exit from the eurozone.
The euro came under more pressure in early trading Wednesday, unconvinced by the deal struck by the 17 eurozone nations over the weekend to extend Spain a banking sector rescue loan of up 100 billion euros ($125 billion).
Two major concerns stood out: doubts over Spain's outlook even with the eurozone rescue, and Greek elections on Sunday, which in a worst-case scenario could send Athens back to using the drachma.
Adding to Spanish agony, Fitch Ratings on Tuesday downgraded 18 more Spanish banks a day after cutting its ratings on the two biggest banks, Santander and BBVA, despite the massive sector bailout.
German Chancellor Angela Merkel, while hailing Spain's request for a banking bailout, stressed it would come with strings attached, as she warned Europe that halting reforms would be "disastrous".
more
The euro came under more pressure in early trading Wednesday, unconvinced by the deal struck by the 17 eurozone nations over the weekend to extend Spain a banking sector rescue loan of up 100 billion euros ($125 billion).
Two major concerns stood out: doubts over Spain's outlook even with the eurozone rescue, and Greek elections on Sunday, which in a worst-case scenario could send Athens back to using the drachma.
Adding to Spanish agony, Fitch Ratings on Tuesday downgraded 18 more Spanish banks a day after cutting its ratings on the two biggest banks, Santander and BBVA, despite the massive sector bailout.
German Chancellor Angela Merkel, while hailing Spain's request for a banking bailout, stressed it would come with strings attached, as she warned Europe that halting reforms would be "disastrous".
more
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