This morning, it was announced that a vote in the Cypriot parliament on the bailout deal hatched with the EU over the weekend will be postponed until Tuesday. The deal contains a haircut on depositors – meaning those with deposits in the bank have to pay for part of the bailout, directly out of their accounts, right away.
A few days ago Spain was purportedly going to need another €30 billion to €70 billion to recapitalize Spanish banks. I suggested the amount would be at least triple that and it did not take long to do so.
Yahoo! Finance reports Spanish bailout could reach 100 billion euros
A bailout for Spain's teetering banks, once requested by Madrid, could amount to as much as 100 billion euros, two senior EU sources told Reuters on Saturday.
Now that Germany has agreed to an extension, allegedly with no more money on the table, Spain confirms what we all knew would happen, Third Greek Bailout Under Discussion. Euro zone countries are discussing a third bailout for Greece worth 30 billion to 50 billion euros, Spain's economy minister said on Monday, as Athens sought to quell fears it might run out of money before the end of March.
By Sammy Pollack:Late Saturday, eurozone leaders announced a plan to lend Spain up to $125 billion in an effort to stabilize the Spanish banking system. So far, the global markets have responded very well to the news. As I write this, Japan's Nikkei is higher by more than 2%, the euro (FXE) is higher by nearly 1%, and U.S. equity futures are sharply higher.
MADRID — Eurozone nations are negotiating a third bailout for financially strapped Greece that would give the country as much as 50 billion euros (US$56 billion), Spanish Economy Minister Luis de Guindos said Monday.
The bailout would provide between 30 billion and 50 billion euros and its “central scenario for Greece is a deal on the basis of the current bailout, and new conditions to be set with flexibility,” de Guindos said at an economic conference in the northeastern city of Pamplona.