This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
#Open journalism No news is bad news

Your contributions will help us continue to deliver the stories that are important to you

Support The Journal
Dublin: 22 °C Friday 7 August, 2020

Spanish borrowing costs hit record level

Moody’s downgraded Spanish debt to within one notch of ‘junk’ status yesterday.

Image: JAN KOLLER/Czech News Agency/Press Association Images

SPAIN’S BORROWING costs have hit a record euro-era high following Moody’s announcement yesterday that it was downgrading Spain’s sovereign credit rating by three notches.

The downgrade comes just days after the Spanish government reached a deal to borrow €100bn to support its debt-laden banking system and it leaves Spain’s sovereign credit rating at just one notch above ‘junk’ status.

Moody’s said that the agreed loan will increase Spain’s debt burden and it also cited continued weakness in the Spanish economy as being behind the downgrade. The agency said that while details of the aid package have yet to be released, “responsibility for supporting Spanish banks rests with the Spanish government”.

Spain’s 10-year bond yields hit 7 per cent this morning – the figure which saw Ireland, Greece and Portugal all seek an EU/IMF bailout.

Madrid has pressed to distance the aid secured for Spain’s banks from the loan packages agreed for Greece, Ireland and Portugal, saying that no new austerity will be imposed on the public sector as a result of the loan.

Spainish bailout: what we know so far >

Moody’s drives Cyprus towards junk status with two-notch downgrade >

#Open journalism No news is bad news Support The Journal

Your contributions will help us continue to deliver the stories that are important to you

Support us now

  • Share on Facebook
  • Email this article

Read next: