Spanish borrowing on the ECB increases

 

The ECB lent more money to Spanish Banks last month, a further indication that they are coming under increasing stress in meeting their financing obligations.

Earlier today the Bank of Spain reported that the country's Banks borrowed just over 53 Billion euros during the month of May - increasing from 42 Billion the previous month.

Worries over the situation in Greece has resulted in tougher borrowing conditions for governments and banks from countries who have poor credit ratings. Investors enthusiasm for Spanish government bonds has risen to its highest levels in months, while Banco Santander recently struggled to sell the 1 Billion Euros worth of bonds that they issued.