This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2012/jun/08/eurozone-spain-financial-bailout-saturday

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Eurozone crisis: Spain to seek financial bailout on Saturday Eurozone crisis: Spain to seek financial bailout on Saturday
(40 minutes later)
Spain is on Saturday expected to become the fourth eurozone country to seek international help for its debt crisis when emergency talks between Europe's policy leaders agree a package to bail out its crippled banking sector. Spain is on Saturday expected to become the fourth eurozone country to seek international help for its debt crisis when Europe's policy leaders agree a package to bail out its crippled banking sector.
In the latest attempt to control the financial storm that has threatened the existence of monetary union, sources in Brussels and Germany said Madrid had bowed to mounting pressure and asked for assistance.In the latest attempt to control the financial storm that has threatened the existence of monetary union, sources in Brussels and Germany said Madrid had bowed to mounting pressure and asked for assistance.
A conference call between the 17 members of the eurozone will be held on Saturday – when the financial markets are closed – to discuss the request from the single currency's fourth biggest economy.A conference call between the 17 members of the eurozone will be held on Saturday – when the financial markets are closed – to discuss the request from the single currency's fourth biggest economy.
The move came less than 24 hours after the ratings agency Fitch slashed Spain's credit worthiness by three notches to just above junk status and warned that its estimate of the cost of a bank bailout had been doubled to €60bn (£49bn). The move came less than 24 hours after the ratings agency Fitch slashed Spain's credit worthiness by three notches to just above junk status and warned that its estimate of the cost of a bank bailout had doubled to €60bn (£49bn).
"The government of Spain has realised the seriousness of their problem," a senior German official told the news agency Reuters."The government of Spain has realised the seriousness of their problem," a senior German official told the news agency Reuters.
He added that an agreement had to be reached before a Greek general election on 17 June. If parties opposed to the terms of an European Union-International Monetary Fund bailout win, it could cause market panic and lead to Athens leaving the eurozone. He added that an agreement had to be reached before a Greek general election on 17 June. If parties opposed to the terms of a European Union-International Monetary Fund bailout win, it could cause market panic and lead to Athens leaving the eurozone.
Spain's banks lent heavily to the construction sector during the property bubble in the first half of the last decade and are now being doubly squeezed because they hold large quantities of Spanish government bonds.Spain's banks lent heavily to the construction sector during the property bubble in the first half of the last decade and are now being doubly squeezed because they hold large quantities of Spanish government bonds.
The Fitch downgrade led to a sharp sell off in European share prices on Friday morning but the reports of a weekend Spanish bank deal reduced the losses. At 11.30am the FTSE 100 was 47 points lower at 5400. The Fitch downgrade led to a sharp sell-off in European share prices on Friday morning but the reports of a weekend Spanish bank deal reduced the losses. At 11.30am the FTSE 100 was 47 points lower at 5400.