Fears push up Spain bor­row­ing costs

The Peterborough Evening Telegraph - - Uk&world Update -

SPAIN has paid sharply higher in­ter­est rates to raise 2.5 bil­lion euro (£2 bil­lion) in a medium-term debt auc­tion, re­flect­ing fears it will be caught up in the fall­out of the Greek cri­sis. Mean­while a re­cently na­tion­alised Span­ish bank’s shares plum­meted af­ter a news­pa­per said de­pos­i­tors were rush­ing to with­draw money. In­vestors worry that a messy Greek exit from the cur­rency bloc could desta­bilise Spain’s fi­nan­cial sec­tor. The con­cern is that the bank­ing sec­tor might not be able to meet tough new pro­vi­sion­ing re­quire­ments and re­quire bailouts if con­cerns about their sta­bil­ity worsen.

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