ECB Considered Using Euro Rescue Funds for Ireland, Handelsblatt Reports
The European Central Bank considered activating the euro-region’s rescue fund to assist Ireland in refinancing debt, German newspaper Handelsblatt reported, citing unidentified government officials.
Various euro-area countries had already been told to raise money on Ireland’s behalf if the need arose, the newspaper said, without giving more details. In the end, the authorities decided against the plan, it said.
The spread, or extra yield, investors demand to hold 10- year Irish bonds instead of German debt of the same maturity widened to a record 411 basis points last week.
To contact the reporter on this story: Jana Randow in Frankfurt at jrandow@bloomberg.net.
To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net
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