Spain will ask for bailout soon, warns top financier

Spain's banking system will have to be bailed out in the coming months, with lenders jettisoning overseas assets to survive, according to one of Europe's leading fund managers.

Dominic Rossi, chief investment officer for equities at Fidelity, likened the ensuing collapse, which will include the exit of Greece from the euro, to the 1990s Latin American meltdown.

"I don't think it will be long before Spain will need to seek official assistance in the recapitalisation of its banks from both the European Central Bank and the International Monetary Fund." he said.

"Spain has a lot of assets outside of the country and I suspect some of those assets will come on to the market in order to recapitalise the banks ."