Tuesday, June 5, 2012

Spain warns of credit freeze

NEW YORK (CNNMoney) -- Spain's Treasury minister appealed to European leaders for financial support Tuesday, saying the country's credit markets are seizing up.

The yield on Spain's 10-year bond has been flirting dangerously close to the 7% mark that smacks of default anxiety. Over the past week, the 10-year yield has been at its highest level since November.

Treasury Minister Cristobal Montoro told Spanish radio station Onda Cero that it is "technically impossible" for Spain to bail itself out. He said that Spain needs to get more money to improve its debt situation to open the bond markets back up so people can invest in the country.

"The risk premium says Spain doesn't have the market door open," said Montoro. "The risk premium says that as a state we have a problem in accessing markets, when we need to refinance our debt." Read More