Spain's budget deficit will hit 7% of GDP in 2012 and 5.7% in 2013, thereby missing EU-agreed...

|By:, SA News Editor

Spain's budget deficit will hit 7% of GDP in 2012 and 5.7% in 2013, thereby missing EU-agreed targets of 6.3% and 4.5% respectively as the country recapitalizes its banking sector, the IMF forecasts. The fund adds that debt will hit 90.7% this year and 96.9% next year, well above Spanish estimates. Ten-year bond yields surge 37 bps to 6.07%.