Bloomberg News

Spain’s Rajoy Says He Feels No Pressure to Seek Full Bailout

October 19, 2012

Spanish Prime Minister Mariano Rajoy said he doesn’t feel pressure to request a full bailout for his nation and called it “very good” that the European Central Bank’s unlimited bond-buying program is available if necessary.

“I’m not going to take into account any pressure that people might exert on me, but frankly no one is doing that,” Rajoy told reporters in Brussels following a two-day summit of European Union leaders.

Rajoy is playing down the necessity of seeking additional aid as the country’s borrowing costs have dropped since the ECB offered in August to buy bonds on the secondary market of countries that request aid from the euro-area rescue fund and agree to conditions.

The yield on Spain’s 10-year benchmark bond is 2.41 percentage points lower today than a euro-era record of 7.75 percent on July 25, a day after the government agreed to conditions for a 100 billion-euro ($130 billion) European credit line for its banks.

“It’s very important that the mechanism exists because a few months ago it didn’t,” Rajoy said about the ECB’s bond- buying program. “It’s very good because everyone knows it’s there and it can be requested, but at the moment the decision hasn’t been taken.”

To contact the reporters on this story: Angeline Benoit in Madrid at abenoit4@bloomberg.net; Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net.

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


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