S&P analysts have stated that investors should sell any holdings in Spanish stocks before it receives its pre-decided bailout package from the IMF and the EU. The report stated that Spain would require around EUR 280 b (USD 343 b) in funding for the next 18 months, higher than the bailout fund of EUR 260 b.
It cited that since bond yields were around 7 percent, the bailout package would come in with austerity conditions attached, similar to Greece, Portugal and Ireland.
The report also predicted that European markets would fall towards the end of FY12 by around 5 percent as bailout packages and fiscal austerity measures continue to intensify. (CNBC)
Bad news for Spain!
Categories: General News