We now know that Spain has received a standard bailout package like Greece, Portugal and Ireland before it despite attempts by the Spanish government to dress this bailout up as something different. Below is a quick analysis of just what Spain and the Troika have signed up to.
Just to review the rhetoric on the deal first, let's remember what led to the deal and how this deal was advertised over the past two weeks. I have bolded the key parts:
Reuters - 7 Jun: Fitch slashes Spain rating by three notches to "BBB": "Spain's credit rating was slashed by three notches on Thursday by Fitch, which signaled it could make further cuts as the cost of restructuring the country's troubled banking system spiraled and Greece's crisis deepened."
Bloomberg - 9 Jun: Spai...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.