Spain Drains Fund Backing Pensions

By: Pete Jackson

Spain's been discreetly dipping into its biggest piggy bank (Social Security Reserve Fund) as a buyer of last resort for government bonds, which is now jeopardizing the fund's role as a guarantor. Apparently 90% of the Eur 65 bln has now been invested in Spanish debt, and the government has been withdrawing cash for emergency payments, according to analysts. The move could weaken PM Rajoy's stance to avoid a bailout, as another  source of finance for the government is eroded.... For the full WSJ story ''google" the headline