Spanish borrowing might end up with zero interest to pay

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Euro Bonds
Euro Bonds Credit: HelenaL flickr

WHAT might have appeared earlier this year as panic borrowing by Spain as it looked to the European Central Bank (ECB) to help bail it out as the country veered into lockdown may actually turn out to be a blessing in disguise.

The ECB has already confirmed that it will effectively underwrite all of the Spanish bonds to be issued and because of the spiralling fall in interest rates, the Spanish Government may well find that the borrowing costs next to nothing.

In the long term it will have to repay the principal but possibly without interest.

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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica.

Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene.

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