FXstreet.com (Barcelona) - According to Padhraic Garvey, Global Head of Developed Markets Debt Strategy: "The spectre of having to exhaust ESM resources with an official rescue of Spain looms large. The banking deal looks to be in the region of 60bn, but the markets are gunning for a wider rescue of Spain. If beyond that Italy or France were to require help we would enter very dangerous territory as it would threaten the very core of the EMU project and would require something bigger than a several liability SPV solution."
"One viable solution in this uncomfortably likely scenario would be to fast-track a common T-bill program into place. This could finance redemptions and deficits in an extreme case." Garvey suggests. "Such a T-bills program would see legislators venture into the unknown, but would also be consistent with evolution towards a more permanent common bond." He explains.
"One viable solution in this uncomfortably likely scenario would be to fast-track a common T-bill program into place. This could finance redemptions and deficits in an extreme case." Garvey suggests. "Such a T-bills program would see legislators venture into the unknown, but would also be consistent with evolution towards a more permanent common bond." He explains.
