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Rescue Fund so that the ECB buys debt but without actually using the money The Government outlined the details of the rescue that is being outlined to the Madrid correspondents of the New York Times, The Wall Street Journal and the Financial Times. These were the specific details that senior Economy officials conveyed to journalists about the plan that Spain is finalizing. The Government is ready to ask for help from the European Central Bank : Luis de Guindos' team admitted “being prepared” to request help. He stressed to foreign correspondents that Spain does not need money from the European Stability Mechanism (the European bailout fund). -- Spain is going to request a line of credit to activate ECB purchases : The Government recognized that Spain “will feel more comfortable” making a request for a line of credit, only in order to satisfy the conditions of the ECB to begin buy bonds.
Do not use a single euro, if it is not strictly necessary : The plan of the Ministry of Economy, revealed to the foreign press, is to request a preventive program from the European Stability Mechanism (ESM), submit to its conditionality, but then not use the funds to buy bonds, or do so only in case of extreme need. -- The new conditions Middle East Mobile Number List have already been agreed with the EU : The Executive recognized that Spain will have to submit to new conditions, and admitted that they will be strictly supervised. However, he also pointed out that Minister De Guindos has guarantees that these demands will be in line with those already included in the National Reform Plan, the package of 43 laws announced by the Government a month ago to stimulate the economy. This movement will be enough for the ECB to automatically buy debt : Spain would have to sign a new Memorandum of Understanding and will be subject to its conditionality.
The Government is convinced – and conveyed this to foreign correspondents – that this step is sufficient for the ECB to activate the purchase of Spanish debt on the secondary market. -- There is no need to make any immediate maneuvers : The Government considers that as the country's financing costs in the bond markets have fallen sharply since the summer, it can wait to see if the markets anticipate a further fall. Experts consulted by ECD explain that Moody's 'extension' is precisely part of the fact that the rating agency has taken for granted that the Spanish Government will request a bailout. Also in that it considers that the risk of Spanish debt having market access problems will be considerably reduced by the willingness of the European Central Bank (ECB) to buy Spanish bonds to contain its volatility. In fact, when explaining whether it will choose to lower or raise the rating in its next decision, Moody's specifies that it will depend on whether the ECB's decision to buy debt materializes or not .
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發表於 14:05:07