It is thought Spain’s banking sector will require another bailout of more than more than €100bn.

Spanish banks face a record number of bad debts with 1 in 10 loans in arrears.

Spain already received €100bn in June to recapitalise it’s banks, but at the time many economists warned the amount was not sufficient and it would only be a matter of time before Spain required more cash.

The political mood in Spain is also deteriorating with the Catalonian region threatening to break away from the rest of Spain because of the financial crisis and the austerity measures.

via Debt crisis: Spain ‘will need extra bail-out’ – Telegraph.