Paying more than RBS and Lloyds. And we thought they were basket cases.
From the same article
“In the face of rising funding costs, we expect that the main source of funds will stem from incremental balance sheet deleveraging, especially in the peripheral countries. The effect of this, however, will be to place direct pressure on lending volumes, resulting in lower [net interest income] margins and lower growth rates in the wider economy.”
They have to do something about this. Less lending is going to make it bloody impossible for Spain to get back to growth.