Post by account_disabled on Feb 21, 2024 23:45:59 GMT -5
Given the Greek crisis, it will undertake purchases of Spanish debt so that, in no case, there is a rise of 50 integers Rajoy activates a Crisis Cabinet in Moncloa for Greece: telephone contacts with five ministers Spain opposes Greece leaving the euro: avoids a disbursement of 18 billion The ECB saved Spain from an economic collapse on Monday The Greek embassy guarantees Spanish tourists that they will find money, food and fuel De Guindos qualifies Rajoy: Greece's 'no' does not imply its exit from the euro The president of the ECB, Mario Draghi, and the Minister of Economy, Luis de Guindos. The president of the ECB, Mario Draghi, and the Minister of Economy, Luis de Guindos. Do not exceed the psychological barrier of 200 basis points. It is the maximum limit that the European Central Bank has set for the Spanish risk premium. It has informed the Government that it will intervene before approaching that mark, by purchasing debt to compensate for the sales that occur due to the uncertainty after Greece's rejection of the Troika plans.
The victory of the 'no' in the referendum held in Greece this Sunday shot up the Spanish risk premium to 163 basis points at the beginning of the session this Monday , 21 above Friday's close, also after the bond yield Spanish ten-year bond will rise to from 2.212%. The organization chaired by Mario Draghi, as revealed by El Confidencial Digital, already intervened last week to contain the first major contagion effect to Spain due to the outbreak of the Greek crisis . The ECB is ready for new actions Now, as ECD has learned from sources at the Government's economic leadership, the European Central Bank is prepared to act again in the coming weeks. And this has been confirmed by the Spanish Executive. They assume that volatility is going to set in again in the markets , especially as it affects the debt Denmark Mobile Number List of Spain and Italy, as long as negotiations between the Tsipras Government and the European authorities do not progress. Purchase of debt if the premium shoots up 50 points Given this scenario, the Moncloa Economic Office and the Treasury have received guarantees from the ECB that, if the magnitude of the movement in the Spanish risk premium is between 50 and 100 points, the central bank is prepared for intervention , unless through its quantitative easing program.
It is basically the purchase of bonds issued by the Government or by public institutions of the State , such as the Official Credit Institute (ICO). Even if the fluctuation is greater than 100 points, a scenario that is considered unlikely among the Government's economic advisors, another possibility is that the OMT (bailout program) of the ECB is activated . Do not exceed the 200 point barrier After Greece's 'no', some investment banks predict a strong reaction in the markets, with a pronounced movement of increased risk , especially in the bond markets of the European periphery. According to the Government sources consulted, the ECB's debt purchases aim, at all times, to ensure that the Spanish risk premium does not exceed the psychological barrier of 200 points , because that would increase the risk that Spain would enter a spiral of distrust. which would trigger the yield of the bond. exp-player-logo Ver más Be careful what you buy: the OCU warns about risks of this product Nomura , for example, maintained this Monday in a report that the spreads of Spain and Italy could approach 200 basis points in the coming days, when they had now been below 150. Others, such as Barclays, calculate that the premiums Spanish and Italian risk rates could even approach 250 points .