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Spain's risk premium fails to ease

Fri, 20th Jul 2012 09:19

The Finnish parliament has given the thumbs up on the Spanish bailout plan, according to reports.

The approval follows a bilateral agreement in which Spain will provide a cash collateral worth €769.92m in exchange for Finland's contribution to the bailout fund.

Similarly, Germany's lower house Bundestag had approved the plan yesterday with 473 votes in favour, 97 opposed, and 13 absentees.

Later today, the Eurogroup is expected to give its approval of the bailout's Memorandum of Understanding (MoU) in a teleconference call.

Despite the latest indications that the bailout plan will move forward, Spanish debt is still finding elevated pressure in the market. Spain's risk premium is at 582 basis points while the 10-year bond yield has moved above the feared 7% threshold to 7.03%.

SC

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