Spain will ask for bailout this weekend suggests reports

Spain is poised to make a request over the weekend for a financial package to prop up its troubled banks, it was reported today.

The request would follow a conference call of eurozone finance ministers tomorrow, Reuters reported, citing two senior EU officials and one German source. A Eurogroup statement would also be released.

“The announcement is expected for Saturday afternoon,” one of the EU officials said.

A Spanish government official said: “We are not commenting on any suggestion of a rescue.”

Spain’s cost of borrowing has soared close to the level which forced Greece, Portugal and Ireland to seek financial rescues, after rating agencies downgraded the country yet again, and suggested that it needs at least 100 billion euros to bail out its banks.

Any bailout request would probably be made on either Friday afternoon or Saturday in order to give the markets time to digest the news before trading starts on the Monday.

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