Spain's borrowing costs rose on Friday after European Central Bank chief Mario Draghi failed to announce immediate plans for dealing with the euro debt crisis.
The yield for Spanish 10-year bonds stood at 7.4 per cent, well
above the critical 7-per-cent level. The spread measuring the
difference between Spanish and German 10-year bonds rose to 616 basis
points.
Spanish analysts saw Draghi as pushing Spain towards a second
partial financial rescue, after the eurozone pledged up to 100
billion euros (120 billion dollars) in aid to the country's ailing
banks.
Draghi said the central bank would buy debt of weaker eurozone
members only after they asked for help from the eurozone bailout
funds.
That would subject Spain to new economic conditions dictated by
its partners, reducing its margin of manoeuvre to almost zero, the
daily El Pais wrote.
Prime Minister Mariano Rajoy on Thursday declined to say whether
Madrid was planning to seek aid from the euro rescue funds.
