Tuesday, April 7, 2015

Spain is financed first negative rate – The Economist

Spain first aired Tuesday short-term debt with negative interest is recovered from investor confidence in a country which came out in 2014 test.

Spain first aired Tuesday short-term debt with negative interest test recovered investor confidence in a country which came out in 2014, several years of recession.

Spanish Treasury placed 725 million euros (790 million dollars) in letters to six months with an average negative rate of -0.02%, said in a statement.

“This is the first time it happens” the chief minister, Mariano Rajoy, was pleased with the leaders of its formation, the conservative Popular Party.

Other eurozone countries are already funded with negative rates in short-term operations. This is the case in Germany, France or Ireland.

In the case of Spain, this means that investors who bought these Treasuries lost 0.02% of the amount invested.

His interest is that these bonds are considered very safe investments and that allows them to diversify their portfolio.

The Spanish economy emerged in 2014 from five years of recession or no growth with an increase of 1.4% of its Gross Domestic Product (GDP).

Rajoy announced that the growth forecast of 2.4% for 2015 could be revised upwards at a time when the signs of economic recovery are multiplying in the country.

The Bank of Spain increased in late March its own growth forecast to 2.8% this year.

This allows the fourth largest economy in the eurozone finance from 2014 on markets with low interest rates.

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