Tags: Spain | Bailout | Eurogroup | Juncker

Spain Won't Need a Bailout, Eurogroup's Juncker Says

Tuesday, 17 April 2012 07:20 AM

Spain will not need financial aid from the eurozone because its fiscal consolidation is impressive and its structural reforms are on track, the chairman of eurozone finance ministers Jean-Claude Juncker said on Tuesday.

Spanish 10-year borrowing costs on Tuesday dipped back below the 6 percent level hit on the secondary market on investor concern that a recession in the Spanish economy would reduce the country's ability to service its debt.

Investors are also worried that falling real estate prices in Spain, against which Spanish banks extended mortgage loans, could mean the banking sector could need more capital than provided for now.

But Juncker dismissed such concerns.

"I am really impressed with (Spain's) ambitious consolidation program," he told reporters in Luxembourg.

"I don't think Spain will need any kind of external support. There is no reason for Spain to ask for a specific program, I would like to invite financial markets to behave in a rational way. Spain is on track," Juncker said.

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Tuesday, 17 April 2012 07:20 AM
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