Stock market plunges to three year lowThursday 12 April 2012
Spanish stock markets fell 3.6% to a three-year low on Friday as concerns mounted that the country will become the next weak spot in the eurozone debt crisis and it emerged that Spanish banks had increased their reliance on cheap loans from the European Central Bank in March, borrowing almost double what they did in February.
The financial institutions, virtually blocked out of wholesale credit markets, borrowed a record €316.3bn from the ECB in March.
The Bank of Spain's figures, compared with February borrowings of €169.8bn (£139bn), sent the cost of insuring Spanish debt against default to a record high and came just before Spain tests market appetite for its debt next week. http://www.guardian.co.uk/business/2012/apr/13/spanish-stock-market-plunges