$125 Billion Bank Bailout Announcement Sparks Massive Protests In Spain

People in Spain have taken to the streets hours after the government’s decision to request for a bailout for its struggling banks.

Just hours ago it was announced that Spain has officially put forth a request for $125 billion to recapitalize their banks in the midst of a European wide bank run.

Bank Run Forces Spain To Request $125 Billion Bailout

Spain has officially requested a $125 billion bailout to keep its banks afloat after massive deposit withdrawals from the nation’s banks.

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Within hours of the announcement a massive number of citizens are now flooding the streets of the capital city of Madrid to protest the bailout.

As the sovereign debt crisis has made it infeasible to access funding from the markets Spain is being forced to borrow money from other European nations to pay for the bailout.

The additional debt will add to the overwhelming debt load Spanish citizens are being forced to pay as they face harsh austerity measure in the midst of raging unemployment in a depression-like economy.

Press TV reports:

Spanish protesters rally against bank bailout request

Press TV – Protesters in the debt-ridden country were out on the streets of the capital Madrid on Sunday against the newly government’ decision on asking for European Union financial assistance to save the banks.

The demonstrators were banging their pots and pans in protest against the government’s call for help.

They were telling their government that it’s the suffering citizens that should benefit from international aid, not the financial institutions.

Spain government on Saturday, after an emergency economic videoconference with eurozone finance ministers, announced the decision.

“The Spanish government declares its intention to request European financing for the recapitalization of those banks that need it,” Spanish Economy Minister Luis de Guindos said at a press conference after the videoconference.

The decision is seen as a U-turn in policy by Spanish Prime Minister Mariano Rajoy, who had firmly ruled out the need for a bailout for the country’s banking sector.

Spain has been under pressure to shore up its banking sector before the parliamentary elections in Greece.

There are growing concerns that the outcome of the Greek polls could lead to the country’s exit from the eurozone and further destabilize the euro.

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