Spanish Bank Bailout Heightens Pressure on Madrid

 Economic pressures are growing on Spain after the government took over the country's third largest bank with a $24-billion bailout to account for its toxic¹ real estate loans.

 

Prime Minister Mariano Rajoy said Monday that the debt-ridden government's takeover of Bankia would not force the Spanish government to seek a bailout from its European neighbors. With more than $40 billion in bad loans, Bankia was one of the hardest hit Spanish financial institutions during the country's real estate collapse², although some analysts³ say another $37 billion in government assistance may be needed to prop⁴ up other banks.

It was uncertain how the bailout would be paid for. A senior economist⁵ with the British bank Standard Chartered, Sarah Hewin, said the euro currency bloc's rescue fund could provide the funds.

 

"The European bailout funds are there to help with the banks, particularly once we have the European Stability Mechanism⁶ up and running in July," said Hewin. "That has the ability then to support banks rather than having to support the governments as a whole."

 

Some Spaniards, including Javier Casas, a justice sector⁷ administrator⁸, voiced their anger at the thought they should be responsible for the banks' financial missteps.

 

"I don't think it's right that we have to pay for debts of a private entity⁹ whose directors and mangers generated the debt," said Casas.

 

With the growing Spanish banking¹⁰ crisis, investors¹¹ showed new concern about debt sold by the Madrid government.

 

Interest rates on Spanish bonds rose to more than five percent higher than those sold by economic powerhouse Germany. It was the biggest interest rate spread between the two countries in the 13-year history of the euro currency.

 

Meanwhile, financial market concerns eased Monday in Greece, as political surveys released over the weekend showed new support for the conservative New Democracy party. It supports adherence¹² to the austerity plan Athens agreed to earlier this year in exchange for its second international bailout in two years.

 

After a splintered election earlier this month, Greece's fractious political parties were unable to forge a new coalition¹³ government and a new election is set for mid-June.

 

Voter sentiment seemed to be trending toward the radical¹⁴ left Syriza party that has called for rejection¹⁵ of the severe spending cuts. If the conservatives win enough seats in the parliamentary voting, they may be able to form a new government with the socialists¹⁶, who also favor the bailout terms.

1 toxic   

adj.有毒的，因中毒引起的

参考例句：

• The factory had accidentally released a quantity of toxic waste into the sea.这家工厂意外泄漏大量有毒废物到海中。
• There is a risk that toxic chemicals might be blasted into the atmosphere.爆炸后有毒化学物质可能会进入大气层。

2 collapse   

vi.累倒；昏倒；倒塌；塌陷

参考例句：

• The country's economy is on the verge of collapse.国家的经济已到了崩溃的边缘。
• The engineer made a complete diagnosis of the bridge's collapse.工程师对桥的倒塌做了一次彻底的调查分析。

3 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

4 prop   

vt.支撑；n.支柱，支撑物；支持者，靠山

参考例句：

• A worker put a prop against the wall of the tunnel to keep it from falling.一名工人用东西支撑住隧道壁好使它不会倒塌。
• The government does not intend to prop up declining industries.政府无意扶持不景气的企业。

5 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

6 mechanism   

n.机械装置；机构，结构

参考例句：

• The bones and muscles are parts of the mechanism of the body.骨骼和肌肉是人体的组成部件。
• The mechanism of the machine is very complicated.这台机器的结构是非常复杂的。

7 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

8 administrator   

n.经营管理者，行政官员

参考例句：

• The role of administrator absorbed much of Ben's energy.行政职务耗掉本很多精力。
• He has proved himself capable as administrator.他表现出管理才能。

9 entity   

n.实体，独立存在体，实际存在物

参考例句：

• The country is no longer one political entity.这个国家不再是一个统一的政治实体了。
• As a separate legal entity,the corporation must pay taxes.作为一个独立的法律实体，公司必须纳税。

10 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

11 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

12 adherence   

n.信奉，依附，坚持，固着

参考例句：

• He was well known for his adherence to the rules.他因遵循这些规定而出名。
• The teacher demanded adherence to the rules.老师要求学生们遵守纪律。

13 coalition   

n.结合体，同盟，结合，联合

参考例句：

• The several parties formed a coalition.这几个政党组成了政治联盟。
• Coalition forces take great care to avoid civilian casualties.联盟军队竭尽全力避免造成平民伤亡。

14 radical   

n.激进份子，原子团，根号；adj.根本的，激进的，彻底的

参考例句：

• The patient got a radical cure in the hospital.病人在医院得到了根治。
• She is radical in her demands.她的要求十分偏激。

15 rejection   

n.拒绝，被拒，抛弃，被弃

参考例句：

• He decided not to approach her for fear of rejection.他因怕遭拒绝决定不再去找她。
• The rejection plunged her into the dark depths of despair.遭到拒绝使她陷入了绝望的深渊。

16 socialists   

社会主义者( socialist的名词复数 )

参考例句：

• The socialists saw themselves as true heirs of the Enlightenment. 社会主义者认为自己是启蒙运动的真正继承者。
• The Socialists junked dogma when they came to office in 1982. 社会党人1982年上台执政后，就把其政治信条弃之不顾。