The crisis in the Spanish banking system, which exploded with the Bankia case, will lead the Iberian country to make an official bailout request for its banks this weekend. This is what two European sources and a German source report, according to which the details of the bailout plan are still vague.
European sources also let it be known that Eurogroup finance ministers could hold a conference call on Saturday to discuss aid to Spanish banks. Spain's need to resort to EU aid is linked to the crisis in the banking sector and the need to recapitalize various institutions, including Bankia, for a total requirement estimated at between 50 and 100 billion euros, according to the agency rating by Fitch.
In the note the rating agency, which precisely by virtue of the cost of the restructuring and recapitalization of Spanish banks has lowered the rating by three notches on Spain's debt from A to BBB, with negative outlook, expects the country to remain in a recession for the rest of 2012 and into next year.
