In my previous post on the topic, I had written about the impending fallout of Greece from the Eurozone and stated about the case of Spain and Portugal. The latest update on that side is about the Bailout requirement in Spain that is expected to be anywhere between 50 Billion to 150 Billion Euro. However, the bailout package of Euro 19 Billion established by Spain in 2009 is just left with Euro 5 Billion and that means inadequacy of funds for Spain to bailout the Banking Sector that is reeling under crisis.
The Member nations of European Union (EU) are now pushing hard on Spain to come out clean on its Banking Bailout plan for the deficit between the requirement and the funds available with Spain. As per the news prevailing, Germany has taken an aggressive stance towards the Bailout of Spanish Banking Sector and has been Pushing Spain hard to do so. But the speculation lies in how Spain is going to achieve that when the country is already hit real bad by recession.
There were speculations around Spain having raised a request with IMF, but IMF spokesperson clarified that IMF has not received any such request from Spain and hence is not preparing any bailout package for Spain.
So the situation here is really uncertain with Greece, Portugal and Ireland already requesting for Financial Assistance and now Spain joining the fray where it is almost at the verge of raising the request for Financial Assistance.
What would happen is full of uncertainty and that certainly would hit the World Financial Market real bad, unless the Weak European Union leadership comes together and works out a unanimous Work provision to deal with the Financial Crisis and Uncertainty prevailing in the Eurozone. The world markets would keep tumbling the way they had been and the traders world over will have to keep a close eye on the Eurozone development to ensure that neither they nor their client suffer from the negative fallouts in Eurozone.
Till we hear a cheer from Eurozone, it would be a time to be cautious and it would be a tough time to deal with the Financial Turmoil, for us Indians Too....