Bloomberg News

ECB Declines to Comment on Spanish Bank Bond Loss Report in WSJ

July 16, 2012

The European Central Bank declined to comment on a report that it had recommended that senior bondholders should take losses in the event of a restructuring of Spanish bank debt.

A report in the Wall Street Journal today said ECB President Mario Draghi advocated imposing losses on senior bondholders issued by “the most severely damaged” Spanish savings banks at a meeting of European Union finance ministers on July 9. A spokesman for the Frankfurt-based central bank wouldn’t comment on that discussion.

The spokesman said in an e-mail that the ECB’s advice aims to ensure that the treatment of senior bondholders is in line with EU rules. He added that national authorities regulate bank resolution processes. The ECB provides advice whenever requested, he said.

To contact the reporter on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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