Banco Popular, one of the Spain’s leading financial firms, caused mayhem after admitting that it needed billions to bolster its balance sheet. Shocked investors dumped shares in the firm, with the bank stock’s value plunging by 24 per cent this morning, after the cash call and plans to issue another 2 billion shares.

It resulted in €1.4billion being wiped off the value of the bank’s share price. And the worry spread to other Spanish banks with shares in Caixabank and Banco de Sabadell diving by 3.4 per cent and 4.5 per cent respectively. It comes after the country announced record debt levels, owing its creditors €1.095 trillion. Spain now owes more money than its entire economy generates in a year. READ MORE