Spanish Economy Minister Nadia Calvino praised the ECB’s recent efforts to combat rising government debt, and said they were a positive step in avoiding the risk of fragmentation in the eurozone.
At an extraordinary meeting last week, the ECB decided to direct bond reinvestment to help states in the Union’s southern wing, and to devise a new instrument to reduce borrowing costs.
“It is very positive that the ECB has acted promptly and decisively to tackle the speculation, to avoid any fragmentation of European bond markets,” Calvino said at an event, adding that the volatility seen last week did not match the fundamental of countries.
She added that governments need to tackle higher inflation scenarios for longer worldwide.
Calvino stressed that the Spanish Ministry of Finance has made good use of negative interest rates to prepare for the normalization of monetary policy, extending the average maturity of bonds to more than eight years.
BBVA President Carlos Torres stressed at the same event that Spain was in a better position to deal with the financial crisis than before, as it now had lower refinancing needs.
Spain has already covered almost 58% of the medium-term bond issue plan for this year.
Source: Capital
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