English | دری

Eurozone crisis: Spain’s borrowing costs fall

in International Business

Eurozone crisis: Spain’s borrowing costs fall

Spain’s short term borrowing costs tumbled on Tuesday as it raised 4.51 billion euros, on hopes that the European Central Bank will soon start buying its bonds.

According to figures from the Bank of Spain, the 12 month rate slumped to 3.070 percent from 3.918 and the 18 month rate dropped to 3.335 percent from 4.242 percent in July.

Demand outweighed supply by more than two-to-one, allowing the Treasury to raise more than its target range of 3.5-4.5 billion euros.

This year Spain’s borrowing costs have climbed to danger levels, despite tens of millions of euros in spending cuts to reign in a bulging public deficit, prompting speculation that it will need a full bailout.

The eurozone has already agreed to extend a rescue of 100 billion euros in order to secure Spain’s staggering banks.

Last week, Spanish Prime Minister Mariano Rajoy said he would consider asking the ECB to buy Spanish bonds, depending on the conditions attached.

“If it seems reasonable, we will do it,” Mr Rajoy said.

The ECB’s Draghi raised hopes on July 26 when he promised that European Central Bank was ready to do “whatever it takes” to preserve the euro.

 These hopes eased somewhat when he later said the bank “may” resume bond purchases, however even the possibility of action has been enough to support the market so far.


Tags assigned to this article:
DraghiECBEurozone CrisisSpain borrowing cost

Related Articles

North Korea plans to launch 3G data service

North Korea’s Koryolink is planning to launch a 3G data service for foreign visitors and residents from overseas. The country’s

Japan's Sony to 'cut 10,000 jobs'

Sony Corporation has announced plans to cutting 10,000 jobs, about six per cent of its global workforce, according to media

Japan’s Trade Deficit Surging in the First Quarter

Japan’s trade deficit hit its highest in January with exports dipping 9.3% from a year earlier, while imports rising 9.8%.

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.