Eurozone finance ministers, known as the Eurogroup, will hold a conference call today at 11:00 London time wherein they are expected to approve the 100 billion euro bailout of Spain's financial sector.
This assistance will be the only item on the agenda as the Memorandum of Understanding (MoU) is officially laid out and will detail the conditions under which Spain receives the funds that are expected to be fully distributed by the end of 2013.
Despite rumors to the contrary, a European Commission spokesperson said yesterday that this money may only be used for the recapitalization of Spanish banks.
Finland's Parliament approved the deal this morning while Germany gave the go ahead yesterday.
In any case, given that these emergency funds are not being injected directly into the Spanish banks, the country's debt is still suffering from enormous pressure in the market. Spain's risk premium is at 580 basis points while the 10-year bond yield has moved above the feared 7% threshold -generally considered to be unsustainable- to 7.013%.
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