Policymakers in Madrid have today (6 June) called on their fellow member states in the eurozone to come to the rescue of their banking system.
A statement issued by the Spanish government this morning revealed the country is losing access to credit markets due to the fact the nation's debt issues are showing no signs of abating.
The administration indicated that its borrowing costs have become increasingly prohibitive over recent weeks as the yield on its ten-year bonds has slowly edged up towards the danger level of seven per cent.
Cristobal Montoro, Spanish treasury minister, commented: "The risk premium says Spain doesn't have the market door open. The risk premium says that as a state we have a problem in accessing markets, when we need to refinance our debt."
Last week (31 May), International Monetary Fund managing director Christine Lagarde insisted there was no contingency plan in place to bailout Spain in the near future.
By Gary Cooper