Spain Refires European Debt

Local time on April 4th, the Spanish Ministry of Finance announced the results of the previous sale of debt, although the sale of 2 billion 600 million euros of bonds, but its 10 year bond yields rose to 5.62% again, almost the same as last year's November central bank's first round of easing policy before the 5.8% level. The market is worried that a new Spanish centric debt storm may hit and the country is more likely to seek help. On the same day, the International Monetary Fund (IMF) has just granted Portugal a 5 billion 170 million euro rescue loan. EU economic and Monetary Affairs Commissioner Ryan said, in order to allow Portugal to return market European leaders should be prepared to provide more assistance to Portugal at some point in the future.

　　 Portugal Salvage

In April 4th, IMF announced that it had completed the third round of economic assessment of Portugal and decided to provide it with 5 billion 170 million euros in relief loans. So far, the total amount of relief loans issued by IMF to Portugal has reached 18 billion 560 million euros.

As a condition for assistance, Portugal must carry out a series of economic reforms and reduce its fiscal deficit. In 2011, the proportion of the fiscal deficit to GDP will be reduced from 9.8% in 2010 to 5.9% in 2010, to 4.5% in 2012 and 3% in 2013.

Shafi, vice president of IMF, said in a statement that Portugal is in the labor market. Real estate market Structural reforms in other fields have made progress. According to current policies and economic prospects, Portugal's goal of reducing fiscal deficits in 2012 should be achieved, but Portugal also needs to further promote reforms to enhance economic competitiveness.

　　 Spain: deficit runaway

Under the so-called "gourd", the Spanish will become a fuse to rekindle the European debt crisis. Rajoy, Prime Minister of Spain, said in April 4th that the country was facing "severe difficulties": debt ridden, high deficit, weak economic growth, high unemployment and deep financial difficulties. By the end of last year, Spanish debt accounted for 66% of GDP. Spain's budget minister Montoro said in April 3rd that the ratio of government debt to GDP will rise by more than 10 percentage points to 80% this year.

According to media analysis, the current economic problems facing Spain include: the unemployment rate of young people is as high as 50.5%. With the increasing number of unemployed people, the budget deficit of Spain's social security system is likely to soar again, making it difficult for the country to reach the EU's new financial contract standard; secondly, Spain's economy is in serious recession. Affected by the overall recession of the euro area economy and the impact of the austerity plan, Spain's domestic demand has dropped sharply, and the volume of orders has been much lower than before.

　　 ECB: maintain interest rates

In April 4th, the European Central Bank announced that 1% of the low interest rate policy remained unchanged. Previously, Greece successfully passed the second round of rescue plan, the European Central Bank launched two rounds of quantitative easing policy for the banking industry, the European Central Bank worried about inflation intensified, intends to withdraw from the stimulus measures ahead of schedule.

According to reports, the European Central Bank announced the maintenance of the benchmark interest rate unchanged, reflecting its European credit environment and economic stagnation concerns are still heating up. The crackdown on the euro zone's economic growth is devastating.

Although the countries agreed to expand the firewall to 700 billion euros at the recent euro zone finance ministers meeting, some people fear that this move may not be enough to prevent the region from falling into financial turmoil again, especially when there is a default crisis in the fourth core economies of Spain.

To this end, in April 4th, Delagi, the governor of the European Central Bank, said it was too early to talk about "withdrawal". Lagarde, President of IMF, also warned in April 3rd that the global economic recovery is still fragile and that it is not appropriate for the stimulus to brake too early.