Greek crisis sends Spain's risk premium soaring

Reforms remain key to recovery, says Economy Minister Elena Salgado

Concerns over the Greek debt crisis, in particular the debate over a second bailout plan for the country, spread to the rest of the peripheral euro-zone countries on Thursday, including Spain.

The premium on Spanish sovereign debt over the benchmark German bund reached 280 basis points at one point, near the maximum historic level seen in November 2010, when the terms of the Irish bailout were being negotiated. When the markets closed, Spain's risk premium was at 274 basis points.

Economy Minister Elena Salgado said on Thursday that, along with Belgium and Italy, Spain is suffering "a little more" from the instability in the market.

"It is evident that we are in a process of reform, of fiscal consolidation and of financial restructuring, which is being observed with great sensitivity by the market and investors," she said during an interview with Cadena Ser radio station.

More information
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Salgado added that Spain must push on with those reforms. "We have to do everything possible so that the Greek case, which is the thing that is really conditioning the markets, is resolved as soon as possible and in the most satisfactory way possible," she said.

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