Worries over Spain's sovereign debt sparked by report that Spain's fourth largest bank, Bankia will need a further 19 billion euros (23.75 billion U.S. dollars) government fund to recapitalize ended the country's financial indicators in negative territory on Monday.

Investors received another blow as instead of ending 2011 with profits of some 300 million euros (375 million dollars), Bankia posted a loss of around 3 billion euros (3.75 billion dollars) for last year, as it saw shares in the entity plummet in value.

The shares of Bankia dived 26 percent of value within the opening hour of the stock market, and at one point in the day lost 29 percent of its value, before ending the day with losses of 13.38 percent.

Bankia shares now stand at 1.36 euros (1.7 dollars) per share, 63 percent less than the 3.75 euros (4.69 dollars) launch price in July 2011.

Meanwhile, the country's risk premium climbed to 511 points by the close of the stock market.

The Bankia crisis has also seen the interests on Spain's 10-year bonds rise to 6.48 percent, the highest since the European Central Bank injected cheap three-year loans into the banking system on November 2011.

With Bankia's collapse on the stock market and fears that other Spanish banks may also be overexposed to toxic assets, the Ibex 35 lost 2.17 percent in the course of the day and fell below the 6,500 point market.