Comprehensive application assistance concerns are difficult to dissipate.
Spanish Economy Minister Louis · Dejinduosi, on the 16th, Spain on the 20th and the euro zone leaders formally signed the agreement on the 100 billion euros ($ 122 billion) banking aid scheme.
 
Last week, the Euro Group agree to the request of Spain on its banking sector aid, plans to sign an agreement on the 20th and the first funds of 30 billion euros at the end of this month to Spain; also agreed with Spain delayed for one year to meet EU fiscal austerity requirements, namely, dropped in 2014, its deficit in the gross domestic product (GDP), accounting for less than 3%. But this did not dispel investor worries about Spain may fully apply for assistance.
 
The latest data show hit a new high in June in Spain, the European Central Bank borrowing, borrowing a total of 337.2 billion euros, an increase of more than 17 percent compared with May. This shows that, in the economic twice in four years into a serious recession and the unemployment rate up to 24% of the plight of the Spanish banking industry is struggling.
 
The International Monetary Fund (IMF), 16 reduced the expectations of the Spanish economy, and Spain's economic downturn is expected to continue until 2013. IM F three months ago expected the Spanish economy in 2013 will have increased slightly, but is now expected that the Spanish economy will shrink 1.5 percent next year will shrink by 0.6%.
Although the EU would be the banking industry, capital restructuring, private capital outflows continuing, Spain will continue to face the test of market confidence, the IMF said.
 
After the IMF said Spain this year and next year the economy continues to decline, on the 16th, Spain Ibex-35 index plunged by nearly 2%. Investors are worried that the 100 billion euros in the banking sector aid may be difficult to solve the financing problems of Spain, Spain may eventually have to undergo a comprehensive assistance, which allows more investors to sell stock in Spain.
 
Preferential creditors or does not bear the loss
 
As a condition of receiving aid, Spain has agreed to conduct a series of banking sector reform, and accept the supervision of the European Union. The end of June, the Government said that the Spanish banking sector needs 62 billion euros to cover its losses in the mortgage loan defaults.
According to Reuters, the European Central Bank do not want to cause systemic risk of bank failures, priority creditors can afford to lose, but the euro-zone finance ministers opposed this approach.
 
Reported that the European central bank governor Mario Draghi last week and the euro zone finance ministers to discuss the Spanish banking industry assistance schemes had proposed, in the case of some banks may allow preferential creditors to bear some loss. But the finance ministers do not agree.
 
May erode investors' confidence in the euro zone debt problems, the ECB has always been opposed to any bank preferential creditors bear the loss. This shows that the Drudge after taking office, the European Central Bank's stance on this issue was changing.
 
In 2010, the Irish banking crisis because the country to apply for relief, and hope that some banks preferred creditors bear the loss. However, due to fear of causing a strong reaction of the market, the ECB is firmly opposed to any bank preferential creditors bear the loss, but suggested that Ireland pay the loss of preferential creditors, even though some banks have lost their viability.
 
Reuters quoted the official as saying that a euro zone, now the situation has been different, the European Central Bank's position is changing, but the official view that the restructuring of the banking sector in Spain, may eventually there will be no preferential creditors bear the loss .
 
Crisis spread concerns about upgrade
 
At present, investors worry about a goal in Italy in the European debt crisis continues unabated. Spanish and Italian ten-year government bond yields are high, hovering at dangerous levels.
 
Following last week downgraded the sovereign credit rating of the Government of Italy, the major international rating agencies Moody's Investors Service on the 16th lowered the rating of 13 Italian banks, said the view of the Italian Government's own credit standing, may not be able to in times of crisis as its financial sector to provide strong support.
 
Moody's said that the fragile market confidence, as well as Greece and Spain's financial problems will exacerbate the risk of facing Italy. At the same time, Moody's also worried that overseas investors will reduce the willingness to buy Italian government bonds.
 
According to the Wall Street Journal reports, the IM F officials warned on the 16th, Spain and Italy the cost of borrowing is higher than its economic fundamentals to match the level of 200 basis points between the two countries to receive assistance to pay off the debt to increase the possibility.
 
IM F chief economist Olivier Blanchard, 16, also urged European leaders to accelerate the fulfillment of the commitments of the Summit of the end of June, including a focus on banking supervision and expand the role of relief fund. IMF officials suggested that the European Central Bank to restart the bond purchase program, as well as the use of the EU rescue fund to buy its sovereign bonds or provide security for the bond purchase to help reduce the levels of financing for the two countries, Italy and Spain.



Other News:
The bank agreement Nanxiao Spain comprehensive application assistance concerns
U.S. media: the Diaoyu Islands issue rose to dangerous heights
European debt firewall at least two months to take effect
Technology status quo of foreign CNC system
The interpretation Korea rank: jinzhengen four have the title of ＂Marshal＂
Bearing gasket selection an important factor
U.S. bombers locking Chinese clamor for war naked
Russian boat chase to three hours of my fishing boat hit soldiers boarding unopp