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Spain is getting a bailout
worldtraveller
Posts: 14,013 Forumite
Spain's attempts to control its debt suffered a blow when the country's first bond auction since it unveiled a harsh round of cuts came in at the lower end of it target range and at higher yields. In an auction of medium-term debt on Wednesday, Spain sold €2.6bn in the sale of notes maturing in 2015, 2016 and 2020 - the bottom of its €2.5bn-€3.5bn target.
The 2020 bond on offer was sold at an average yield of 5.34pc, with a bid cover of three times.
Spain also sold three and four-year debt. For the notes maturing in 2016, the average interest rate on the three-year notes was 2.89pc, up from 2.44pc in the last such auction on March 15. The bid to cover ratio was 2.4, half what it was in the last auction. The average interest rate on the 2016 note shot up from 3.37pc to 4.32pc. The bid-to-cover ratio fell from 4.1pc to about 2.5pc.
The yield - the interest rate a country has to pay on its debt and an indication of risk - on Spanish 10-year bonds has been rising in recent weeks and stood at 5.53pc in the secondary market shortly after Wednesday's sale, compared to 4.9pc a month ago.
The Telegraph
IMHO a bailout for Spain, frankly a basket case for some long time now, was due ages ago and is yet another reason why we won't see any settlement of the whole Eurozone crisis for years to come, the inherent uncertainty continuing to stifle any organic growth in the region and, as a result, worldwide.
The 2020 bond on offer was sold at an average yield of 5.34pc, with a bid cover of three times.
Spain also sold three and four-year debt. For the notes maturing in 2016, the average interest rate on the three-year notes was 2.89pc, up from 2.44pc in the last such auction on March 15. The bid to cover ratio was 2.4, half what it was in the last auction. The average interest rate on the 2016 note shot up from 3.37pc to 4.32pc. The bid-to-cover ratio fell from 4.1pc to about 2.5pc.
The yield - the interest rate a country has to pay on its debt and an indication of risk - on Spanish 10-year bonds has been rising in recent weeks and stood at 5.53pc in the secondary market shortly after Wednesday's sale, compared to 4.9pc a month ago.
The Telegraph
IMHO a bailout for Spain, frankly a basket case for some long time now, was due ages ago and is yet another reason why we won't see any settlement of the whole Eurozone crisis for years to come, the inherent uncertainty continuing to stifle any organic growth in the region and, as a result, worldwide.
There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
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Comments
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What the article doesn't talk about is Spain's horrendous unemployment rate - nationally 24% (IIRC) and 46% of young people.
These are shocking numbers by any standard and surely Spain will follow Greece into oblivion unless there is a change of tack.
How sad that we do not learn from history, with Germany foisting the very same austerity on the PIIGS that was foisted on it after WWI.
We all know where that ended...0 -
Over a year ago I posted that a business friend of mine, who lives & works in Spain, reckoned that if the cajas and main banks in Spain actually reflected, in their accounts, the true market value of the properties that they made bad loans on and/or have repossessed, things would be significantly more serious than they appear to be. That ain't changed. Infact it's probably a lot worse now.
However, maybe it just suits the EU to keep the cajas actual problems well 'hidden'? :think:There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
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in my opinion the likes of spain and greece were second world countries living like first world countries.0
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Never mind. Von day ve vill all be part of Greater Germany. Achtung!The_White_Horse wrote: »in my opinion the likes of spain and greece were second world countries living like first world countries."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
A friend of mine just came back from Spain, she said things are getting very bad now.
So many homeless and even more out of work, they dont get any help from gov like in the UK.
She bought some junk food very cheap it was a burger and chips type meal she put it in front of here and a hodded man swipped it away and ran with all his might. She laughed now telling the story but it shocked her, that people are that hungry and its not like a 3rd world country, yet!0 -
Darthvader wrote: »A friend of mine just came back from Spain, she said things are getting very bad now.
So many homeless and even more out of work, they dont get any help from gov like in the UK.
She bought some junk food very cheap it was a burger and chips type meal she put it in front of here and a hodded man swipped it away and ran with all his might. She laughed now telling the story but it shocked her, that people are that hungry and its not like a 3rd world country, yet!
I expect not a single bit of this is true.0 -
I was reading recently that around 40-50% of Spain's local governments are in serious economic trouble and many of the public sector workers haven't been paid for 2-3 months (White Horse will love that!
) There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
Must be time for the ECB to hand out some more free money...now remind me who underwrites the ECB?I think....0
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What the article doesn't talk about is Spain's horrendous unemployment rate - nationally 24% (IIRC) and 46% of young people.
These are shocking numbers by any standard and surely Spain will follow Greece into oblivion unless there is a change of tack.
There's a serious amount of black economy work going on in Spain, those numbers are very high indeed but they're not the whole story here.0
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