July 28 local time, foreign media reported that the Spain Minister Louis Dejinduosi, in a meeting with the German officials admitted for the first time, if borrowing costs continue to remain above 7%, and Spain may seek at least 300 billion euros of internationalrelief.
After this announcement, Wolfgang Schaeuble, Germany's finance minister denied, said the Spanish relief is only short-term, market without worrying about the arrival of the "doomsday". But investors believe that at least Spain has begun to consider the "full assistance" to be more cautious.
Spanish crisis is no longer confined to the banking industry. Last week, Spain lending rates rose to the highest level since joining the euro zone, the 10-year Treasury yield of 7.78%. This figure to open the door for Spain to enter the "Greek style" comprehensive relief. Because more than 7% of the cordon means that the financing of the country can not be sustained, must be sought outside force to prevent the deterioration of the situation. The euro zone officials said that the need ? 100 billion rescue the Bank of Spain, once the country to confirm the need for a comprehensive rescue, then the amount of money involved will be as high as 300 billion euros, and this amount does not include the ? 100 billion bank holding stability of funds previously approved.
Spain has begun to consider the "full distress", but Germany does not appreciate it. Schaeuble, declared that the short term will not be considered to rescue Spain because Spain alert may be lifted after the official launch of the European stability mechanism (ESM),. However, the scale of up to ? 500 billion euro permanent rescue mechanism and the European stability mechanism is expected to start in mid-September, Spain, whether coming to an uncertain time.
Spain is also disagreement whether to accept full relief on the issue. International Monetary Fund (IMF) released on Friday warned that Spain's economic difficulties, the great downside risks, if not for structural adjustment and economic reform, it is difficult to restore market confidence.
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