The news that Spain's banks will receive a bail-out of around €100bn to ease pressure on the country's banking sector has been met with mixed reactions from the markets.
Newton & BNY Mellon's Paul Brain has spoken out on the potential impact this latest aid package will have on the rest of the Eurozone. He starts by questioning where the €100bn is coming from. "The money will come from either the European Financial Stability Facility (EFSF) or its successor, the European Stability Mechanism (ESM), which comes into force in July - although the exact source of the funds (EFSF or ESM) has quite significant ramifications for the make-up of the bailout. If it came from the ESM, existing and future private holders of Spanish government debt would rank behind E...
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