Spain has extended a ban on short-selling for Spanish securities from October 24 to October 31, to discourage investors trying to profit from the current crisis of the economy.
The market continues to hazard a guess when Spain will seek aid, said Dean Popplewell, chief currency analyst at foreign exchange broker Oanda.
Capital flight from Spanish banks continued in August, when deposits fell about 1% to €1.492tr, a fresh low since April 2008, according to data from the European Central Bank.
Spain is studying the possibility to grant to its central bank new powers to intervene more rapidly to rescue troubled lenders via the country's bank rescue fund set up by the government.
Spain's government is ready to proceed with the formal request to receive the first payment of the €100bn aid tranche granted to the country by the eurozone.
Capital flight from Spain accelerated in May and outflows reached €41.3bn during the month, according to data published today by the Bank of Spain.
Up to six of the 17 Spanish indebted autonomous regions could follow the steps of Valencia and request support from the central government of the country, which set up a €18bn fund to finance the regional deficit.
Spanish banks might need up to €62bn to complete the recapitalization process, according to stress tests conducted by independent auditors Roland Berger and Oliver Wyman.
Italy will be the next country to need a full-scale bailout after the one announced on June 9 by Spain, according to Sean Jones, founding partner and president of indipendent rating agency Egan-Jones.
Luis Maria Linde succeds today Miguel Ángel Fernández Ordóñez as governor at the Bank of Spain, following Ordoñez' decision to leave his post a month before the end of his mandate.
The statement on Spain by the Eurogroup - the group of euro area finance ministers - is repeated here in full.
Spain's move to seek assistance from the EU to recapitalise its banking sector has been welcomed by Olli Rehn, vice-president of the EC in charge of Economic and Monetary Affairs and the euro.
Asset managers are keeping Spain and its economy under careful observation, following domino effects on the economy of the country caused by the government’s decision to agree on a €19bn recapitalisation of Spanish troubled lender Bankia.
The European Central Bank (ECB) confirmed it was not consulted by the Spanish authorities on the possible bail-out of troubled lender Bankia via the ECB.