News From The Eurozone on Spanish Rescue

EUROPE SPEEDS SPANISH RESCUE – Bloomberg/Brussels: “European governments will jump-start as much as 100 billion euros ($123 billion) in loans to shore up Spain’s banks and may move the costs off the Spanish government’s balance sheet in an effort to shield the euro region’s fourth-largest economy from the debt crisis. Thirty billion euros will be lent by the end of July with the goal of eventually using the euro-area bailout fund to recapitalize banks directly instead of saddling the Spanish government with the debts … “A four-day slump in Spanish and Italian bonds highlighted sagging confidence in the crisis response, especially after the [ECB] showed no signs of restarting its bond- buying program. Ten-year bonds now yield 6.98 percent in Spain and 6.07 percent in Italy, compared with 1.32 percent in Germany”