Reuters has reported exclusively that Spain will turn to its neighbors as early as Saturday as its ability to raise money and the damage to its banks spreads rapidly. Most experts believe that the banks are the more serious problem, but outside investors are unlikely to take the risk involved in putting money into private enterprises. And, money raised by Spain may, by necessity, go into these firms. A rescue of Spain will almost certainly trigger the expected panic in the markets about whether eurozone members and the IMF have the capital to bailout the fourth largest economy in the region.
Reuters reports:
Two senior EU officials said finance ministers of the 17-nation single currency area would hold a conference call on Saturday to discuss a Spanish request for an aid package, although no figure had yet been set.
Douglas A. McIntyre
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