Spain is in deep crisis

On July 2, 212, Euro Group approved the plan to assist the Spanish banking industry, and formally signed a memorandum of understanding on this on the 21st. However, the specific rescue amount and restructuring plan need to be determined after the evaluation of the Spanish banking industry, which is expected to end in September. Another "tipping point" of Spain's debt crisis is the rapidly spreading local debt crisis. At present, the local government in Valencia, Spain has asked the central government to provide liquidity assistance, and another six local governments may seek help one after another due to financing difficulties.

on 2th, Egan-Jones, a rating agency, downgraded Spain's sovereign credit rating from CCC+ to CC+. Standard & Poor's Capital IQ Company (S&; Rob Quinn, chief European equity strategist of P Capital IQ, also advised investors to quickly sell Spain's shares before it was forced to apply for a comprehensive bailout and make more compromises with the European Union and the International Monetary Fund (IMF).

since the end of the decade-long real estate boom in 28, the Spanish banking industry has been in deep crisis, and the non-performing loans of banks have climbed.

Spanish Finance Minister Montero said on the 2th that the local government of Valencia, one of the regions with the heaviest debt burden in the country, has asked the central government to provide liquidity assistance. According to the Spanish newspaper El Pais, there are also six local governments that may follow the footsteps of Valencia for help, including Catalonia, Castilla-la mancha, Balearic Islands, Murcia, Canary Islands and Andalusia, the richest regions in Spain.

Spain's central government just set up a rescue fund with a scale of 18 billion euros on the 13th to help cash-strapped local governments. According to the report, the above-mentioned local governments intend to apply for assistance from the fund, and the specific demand for assistance is still unknown.