As a result, domestic banks and the government found it increasingly difficult to obtain external financing: banks had to turn to the Eurosystem, whereas public debt was increasingly placed in domestic banks. A perfect doom loop embrace.
Investors’ concerns eventually led the country to be shut out of the international financial markets in the first half of 2011, after the 10-year yields had nearly doubled in the previous year. This led to a request for official financing under a financial assistance programme negotiated with the European Union and the International Monetary Fund. 3.