Spain auctions bonds to lower lending costs
POSTED: Thursday, September 20, 2012 - 9:00am
UPDATED: Thursday, September 20, 2012 - 9:04am
NBC News — Speculation continues to grow over Spain's need for an international bailout in order to stay afloat. The Spanish government sold more bonds on the international market thursday in an effort to lower the country's lending costs. Spanish banks are sitting on an estimated $250 billion in toxic assets following the collapse of the country's real estate boom.
The country's treasury continues to sell bonds in order to keep interest rates down, but economic analysts are saying the country is starting to run out of options to keep its economy in check. Spain's government is in the middle of a massive austerity program, slashing spending and increasing taxes. Analysts say the effort might be too little, too late and suspect an international bailout will be needed to keep the country from going bankrupt.