Greek government borrowing rates shot up Monday amid growing concern the country will be unable to meet upcoming repayments to the International Monetary Fund.
Interest rates on two-year bonds — a gauge of default risk — surged to 23.5 percent, while the Athens Stock Exchange dropped was down nearly 2 percent in midday trading.
Greece is trying to reach a deal with eurozone lenders that would release the final installment of its bailout plan. It needs the 7.2 billion euros ($8 billion) to avoid defaulting on its debts this summer.
In Spain, the country’s conservative economy minister said he was confident an agreement will be reached in the coming days.
Speaking at a business breakfast Monday, Luis de Guindos said Greece an agreement was imperative given Greece’s financial difficulties. He urged Greece to present a complete and wide-ranging list of economic reforms that creditors have demanded in exchange for the loans.
De Guindos said he was not aware of any alternative emergency plan should an accord not be reached.