Third, if the bailout loan ranks ahead of existing private-sector loans to the Spanish government, there is a risk that Spain will end up paying more to borrow from conventional commercial sources - which is precisely the opposite of what it wanted.
These days, though, banks demand bigger down-payments and better credit scores to lessen the risk of having to buy back a delinquent loan from Fannie Mae and Freddie Mac, the now government-controlled agencies that securitise and guarantee most residential mortgages.