Arab Today, arab today spain holds bailout at bay after debt test
Last Updated : GMT 11:26:36
Arab Today, arab today
Arab Today, arab today

Spain holds bailout at bay after debt test

Arab Today, arab today

Arab Today, arab today Spain holds bailout at bay after debt test

Madrid - AFP

Spain fended off pressure Thursday for a full bailout to end its financial crisis, its economy minister insisting it did not need rescuing \"at all\". The eurozone\'s fourth-biggest economy passed a key test of confidence when its borrowing costs mostly eased in a bond auction, and won praise from the European Central Bank for its crisis reforms. In a speech in London, Economy Minister Luis de Guindos insisted that Spain \"does not need a bailout at all,\" and is \"a competitive and sustainable country\". Earlier in the bond sale, Spain showed it can still tap the markets for financing, raising 3.99 billion euros ($5.2 billion) in two-, three- and five-year bonds, at interest rates that were mostly lower. Pressure remained however, with analysts warning that financial markets were counting on a bailout and the governor of the Bank of Spain casting doubt on Spain\'s fiscal targets and economic outlook. \"The most urgent problem facing the Spanish economy is recovering the trust of the markets,\" the Spanish central bank\'s governor, Luis Maria Linde, told a parliamentary committee. Facing a recession that has left one in four workers unemployed, a bulging deficit and high borrowing costs, Spain remains under pressure from markets and some eurozone partners to seek a full bailout. Some eurozone powers such as Germany, however, are reluctant for Spain to seek a rescue while it still has access to market financing. The ECB has outlined a plan to buy Spanish bonds on the open market to curb interest rates, but only if Madrid applies for a bailout and submits to strict conditions from European bailout funds. ECB chief Mario Draghi lauded what he called Spain\'s \"remarkable\" progress in passing reforms of its labour market and banking sector, as demanded by European authorities. Speaking Thursday after the ECB\'s monthly rate-setting meeting, he cited progress made on fiscal consolidation, structural reforms and the struggling banking sector but warned that \"significant challenges\" remained. Spain\'s borrowing rates dropped sharply after September 6 when the ECB revealed its bond-buying plan but crept up again later as Prime Minister Mariano Rajoy hesitated on the bailout. \"If Spain continues to delay seeking a bailout, the markets may get nervous,\" said Daniel Pingarron, an analyst at brokerage IG Markets. \"They will reward Spain if it seeks a bailout and punish it if it waits too long.\" Asked on Tuesday whether such a request was imminent, Rajoy replied simply: \"No\". \"Investors are still waiting to know what decision the Spanish government will finally take over a possible request for help so that the ECB, in the secondary market, and the European rescue funds, in the primary, can lower its elevated financing costs,\" brokerage Link Securities said in a report. \"October will be a \'test of fire\' for the Spanish government as our country faces payments on its sovereign debt of 30 billion euros.\" Spain\'s central bank head warned Thursday the nation may miss its 2012 public deficit target and slip into a deeper-than-expected recession next year as pressure grows for a sovereign bailout. To regain market trust Spain must meet its deficit-cutting targets, clean up the banking sector, cut private and public debt and deepen reforms to boost competitiveness, Linde said. Spain is already veering from its target to slash the public deficit, he added. \"Given the importance of meeting it, additional measures will have to be considered to make it possible.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spain holds bailout at bay after debt test Arab Today, arab today spain holds bailout at bay after debt test

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spain holds bailout at bay after debt test Arab Today, arab today spain holds bailout at bay after debt test

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday