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.



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