Spain agrees to bail-out plan, specifics to surface soon – Part 1

The latest from the West is that Spain has agreed to receive a bail-out assistance plan from the Euro zone ministers in tune of $125 Billion. However, the Spanish government is expected to release the exact amount needed by June 21.

The mere news of the acceptance of bail-out plan has brought smiles on the faces of investors all across Europe and the US. The sigh of relief has been observed in trading in the stock markets in Spain and the US.

Stocks saw an upward trend and the single trading on one day made this week the most profitable of the current calendar year 2012.

Though Greece elections will play a vital part in the future of the Euro zone, Spanish misery has been worst nightmare in the last few months. The government’s hesitation to accept a foreign aid to assist the national economy had aggravated the banks problems. However, the proposed $125 Billion bail-out is still less than what was expected of the banks.

According to many experts, the financial hole in the Spanish economy was in need of $120 to $400 Billion to bring back the banks to the road of prosperity. However, in this particular case, something is better than nothing can be a good fix.

On one hand, the Euro zone is standing on Achilles’ heel and on the other China is showing prosperity against all odds. The imports and exports in the country increased against all odds, 12.1 and 15.3 percent, respectively. However, production output in the factories was recorded at a mere 9.6 percent, below the expectations of experts.

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Posted by Usman Khalid on Jun 11 2012. Filed under Business, Europe, World. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.