Spain's Rajoy says will seek bailout if debt rates stay high

(PARIS) - Spain will seek a full state bailout if its borrowing rates were to stay at unsustainable levels, Spanish Prime Minister Mariano Rajoy told the Wall Street Journal in an interview published on Wednesday.

If interest rates imposed on Spanish debt were "too high for too long," he said, "I can assure you 100 percent that I would ask for this bailout."

The prime minister said he could not say at the moment if his government would ask for a rescue package from the European Union, insisting that he needs to assess if conditions applied to the bailout were "reasonable".

Rajoy's comments came as the rate of return on Spain's benchmark 10-year sovereign bond rose into the danger zone above six percent on Wednesday for the first time since September 18.

An announcement by the European Central Bank that it would provide support for struggling countries if asked had eased Spain's borrowing costs but they have surged again this week as the government delayed its decision on whether to seek a bailout.