FXstreet.com (San Francisco) - According to BNP Paribas, Spain is expected to formulate a formal request for European help in the coming weeks:
“Thanks to the involvement of the ECB, the bail-out does not need to be very large to be efficient,” says BNP Paribas in a research note. “The expected easing of borrowing costs should indeed make it possible for Spain to keep on raising funds on financial markets.”
BNP Paribas continues: “How much money does Spain need? Adding maturing debt and expected deficits for both the central and regional governments, a full programme covering financing needs until end-2015 would be above EUR 300 bn.”
The market is now awaiting details from the ECB on how it intends to act. EUR/USD last trades at 1.2285 this Thursday in NA vs. 1.2382 at the close past Friday.
“Thanks to the involvement of the ECB, the bail-out does not need to be very large to be efficient,” says BNP Paribas in a research note. “The expected easing of borrowing costs should indeed make it possible for Spain to keep on raising funds on financial markets.”
BNP Paribas continues: “How much money does Spain need? Adding maturing debt and expected deficits for both the central and regional governments, a full programme covering financing needs until end-2015 would be above EUR 300 bn.”
The market is now awaiting details from the ECB on how it intends to act. EUR/USD last trades at 1.2285 this Thursday in NA vs. 1.2382 at the close past Friday.
