The Spanish risk premium climbed to over 450 points on Wednesday.

The climb was a result of a 0.65-percent fall in the rate of German 10-year-bonds. Spanish 10-year-bonds are currently offering an interest rate of over 6 percent.

Worries about the solvency of the Spanish banking system following rumors of an imminent injection of 5 billion to 10 billion euros (6.5 billion to 13.0 billion U.S. dollars) of public funds for Spanish bank Bankia have also forced the risk premium up.

Rodrigo Rato resigned as Bankia president on Monday, apparently to clear the way for the government bailout amid fears of the bank's over-exposure to bad debt in the construction and property market.

The cabinet meeting of Prime Minister Mariano Rajoy will on Friday pass a series of reforms in the financial sector aimed at guaranteeing the solvency of the country's banks, several of which had their credit ratings cut just a week ago by risk assessment agency Standard and Poor's.