Tuesday, Cristobal Montoro, the Spain treasury minister announced in an interview in a radio that the Spanish bond’s high risk premium is keeping them away from bond markets that stops Spain to refinance its debt. Last Friday, June 1st, the 10-year bond spread between Spain and Germany hits an all time European Union record of 548 basis points.
The treasury minister guaranteed that the recapitalization of Spain’s banks does not need too much funds and he advise European Union institutions to aid Spain get them. Montoro also adhere by the government of Spain’s belief that their nation will not call for a bailout, he also said that it is essential to form a Eurozone banking union.
in the meantime, Germans continue to show their disagreement to direct financing for EU banks that are in debt problems and keeping on pressuring the Spanish to allow aid from the Euro rescue fund.