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Posted In: banking doubts gnaw Posted In: Spain funding costs spike
Spain's prime minister voiced concern on Wednesday about the state's ability to finance itself as fears mounted over a spread of the euro zone debt crisis from Greece and a nationalised bank delayed publishing accounts amid talk of it needing more aid. With creditors spooked by Greece's difficulties further east along the Mediterranean, the cost of borrowing for Mariano Rajoy's government hit 6.5 percent on benchmark 10-year bonds, more than 500 basis points above German debt and a record in the 13 years the two states have shared the common currency. "It's a difficult and complicated situation," the premier told reporters in parliament as traders wondered whether Madrid might one day, like smaller Greece, Portugal and Ireland, need foreign help. "The risk premium has risen a lot and that means that it is difficult to finance yourself at a reasonable price."
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