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| Version 3 | Version 4 |
|---|---|
| Markets welcome Spanish banks rescue deal | Markets welcome Spanish banks rescue deal |
| (about 1 hour later) | |
| Markets in Europe and Asia have risen in response to the bailout of Spain's banks that was agreed over the weekend. | Markets in Europe and Asia have risen in response to the bailout of Spain's banks that was agreed over the weekend. |
| On Saturday, eurozone ministers agreed to lend Spain's banks up to 100bn euros ($125bn; £80bn). | On Saturday, eurozone ministers agreed to lend Spain's banks up to 100bn euros ($125bn; £80bn). |
| The FTSE 100 in London rose 1.0%, the Dax in Frankfurt was up 1.9% and the Cac 40 in Paris was up 1.6%. Spain's benchmark index, the Ibex, rose 2.6%. All had earlier made bigger gains. | |
| The euro gained half a cent against the US dollar. | |
| Spain's weakest banks were left with billions of euros of bad loans following the collapse of a property boom and the subsequent recession. | Spain's weakest banks were left with billions of euros of bad loans following the collapse of a property boom and the subsequent recession. |
| Earlier, the Nikkei in Tokyo closed up 2.0%. The Hang Seng in Hong Kong closed up 2.4%. | Earlier, the Nikkei in Tokyo closed up 2.0%. The Hang Seng in Hong Kong closed up 2.4%. |
| On the bond markets, the yield on Spanish 10-year bonds briefly dropped below 6%. Bond yields are taken as an indication of the interest rates that governments would need to pay to borrow money. | On the bond markets, the yield on Spanish 10-year bonds briefly dropped below 6%. Bond yields are taken as an indication of the interest rates that governments would need to pay to borrow money. |
| European banks led the stock market gains, with Lloyds up 4.9%, Barclays up 3.1%, RBS up 3.2%, Credit Agricole up 4.4%, Societe Generale up 3.3%, Commerzbank up 2.5% and Deutsche Bank up 3.1%. | |
| The exact amount of emergency funding that Spain will receive will be decided after two audits of its banks are completed within the next few days. | The exact amount of emergency funding that Spain will receive will be decided after two audits of its banks are completed within the next few days. |
| Spain is in its second recession in three years and the economy is expected to shrink by 1.7% this year. | Spain is in its second recession in three years and the economy is expected to shrink by 1.7% this year. |
| "The Spanish announcement is not a solution to the eurozone's ongoing woes, but it is a statement of intent," said Richard Hunter from Hargreaves Lansdown stockbrokers. | "The Spanish announcement is not a solution to the eurozone's ongoing woes, but it is a statement of intent," said Richard Hunter from Hargreaves Lansdown stockbrokers. |
| "Some much-needed time has now been bought in Spain, which will allow the market an at least temporary sigh of relief." | "Some much-needed time has now been bought in Spain, which will allow the market an at least temporary sigh of relief." |
| 'Happy or humiliated' | 'Happy or humiliated' |
| Spanish journalist Miguel-Anxo Murado told BBC News that many Spanish people were surprised there had been a bailout at all. | Spanish journalist Miguel-Anxo Murado told BBC News that many Spanish people were surprised there had been a bailout at all. |
| "The government has been very successful at denying the need for this bailout," he said. | "The government has been very successful at denying the need for this bailout," he said. |
| "Now the controversy is actually whether we should be happy or humiliated about this." | "Now the controversy is actually whether we should be happy or humiliated about this." |
| There were demonstrations against the bailout in Spain on Sunday. | There were demonstrations against the bailout in Spain on Sunday. |
| The Spanish government said in a statement late on Sunday that it was committed to its programme of economic reforms. | The Spanish government said in a statement late on Sunday that it was committed to its programme of economic reforms. |
| In a statement on the economics ministry's website, it said the Spanish Treasury would continue to borrow money commercially and would continue with its planned programme of bond auctions. | In a statement on the economics ministry's website, it said the Spanish Treasury would continue to borrow money commercially and would continue with its planned programme of bond auctions. |
| The next bond auctions scheduled are short-term sales on 19 and 21 June, after the Greek elections on 17 June, which will be the next key test for the eurozone. | The next bond auctions scheduled are short-term sales on 19 and 21 June, after the Greek elections on 17 June, which will be the next key test for the eurozone. |
| The government has been keen to stress that it is the banks that have been bailed out, not the country. | The government has been keen to stress that it is the banks that have been bailed out, not the country. |
| But in an interview on Monday morning, EU competition commissioner Joaquin Almunia said there would be a troika of authorities to oversee the financial assistance, just as happened with Greece, Portugal and the Republic of Ireland. | But in an interview on Monday morning, EU competition commissioner Joaquin Almunia said there would be a troika of authorities to oversee the financial assistance, just as happened with Greece, Portugal and the Republic of Ireland. |
| The troika will be made up of the International Monetary Fund, the European Central Bank and the Eurogroup of eurozone finance ministers. | The troika will be made up of the International Monetary Fund, the European Central Bank and the Eurogroup of eurozone finance ministers. |