The country's 10-year bond yields have reached 8 per cent, a level higher than that which the Irish and Portuguese precedent suggests a bailout is necessary.
As Robert Peston points out
The subtler, more important point, is that when the implicit interest rate rises to that kind of level, investors know that a country with big debts can't afford to repay what it owes, so they stop lending to said country, they go on strike. No one wants to lend to a country when that country would use the loan to pay the interest on previous loans - that's throwing good money after bad.
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