The Spanish government has decided to inject public funds into an insolvent bank.

The Spanish government disclosed on Monday that it will provide 19 billion euros in rescue funds to Bankia, Spain’s third largest bank. Also on Monday, the yield on Spanish ten-year bonds reached nearly six-and-a-half percent.

Observers say that if the bond yield reaches seven percent, Spain would have no choice but to request a bailout from the International Monetary Fund and the European Union just like Greece and Ireland. A rate of seven percent is considered unsustainable in the long-term.

Meanwhile, Greece is seeing some signs of economic collapse. Transactions among businesses have halted and financial institutions have stopped providing loans. Media reports say that some Greeks are delaying paying taxes amid concerns that Greece could withdraw from the euro zone.

European stock prices plunged on Monday amid such signs that the euro zone financial crisis is likely to get worse.