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No bailout for Spain

Spain's prime minister Mariano Rajoy has adamantly insisted that its embattled banking sector will not need an international bailout.

The pledge comes despite the government lining up a domestic bailout of the institution Bankia, which has been crippled by a slump in real estate.

Rajoy said: "There will be no rescue of the Spanish banking sector." He added that the government "took the bull by the horns" by bailing out Bankia as "the alternative was collapse".

Bankia, Spain's fourth-largest bank, is estimated to have €32bn in toxic assets.