Madrid: Growing financial crisis in Spain is forcing investors to leave, with the European Central Bank said on Wednesday that private individuals and companies are withdrawing their money out of Spanish Banks.
In the last month, private deposits at Spain’s financial institutions decreased by 30 percent.
The interest rate on Spain’s 10-year bonds rose to 6.703 percent as the country battled to avoid being the next victim of the eurozone crisis, Press TV reported.
Madrid’s IBEX-35 index slumped 2.58 percent to a nine-year low at 6,090.4 points. The euro value fell to two-year low against the US dollar.
There are also fears that Spain could be forced into asking for a bailout for its ailing banks.
European Commission said on Wednesday that due to worsening financial crisis the country tops the list of the eurozone 12 critical economies.
The Spanish economy collapsed into recession in the second half of 2008 amid the global economic crisis and many people were left jobless.
Like Greece, the ongoing debt crisis may lead Spain to seek a European Union bailout, like Greece.
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