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Spanish Bank ECB Borrowing Declines Second Month in October

Net borrowing by Spanish banks from the European Central Bank fell in October for a second month as funding conditions for lenders eased.

Net average ECB borrowing dropped 9.7 percent from September to 341.6 billion euros ($435.6 billion), the Bank of Spain said on its website today. Gross borrowing was 366.9 billion euros in October, down from 399.9 billion euros.

The pledge in July by ECB President Mario Draghi to do “whatever it takes” to defend the euro and his offer to buy government bonds should Spain request it has helped ease financing conditions for the country’s banks.

The yield on Spanish 10-year debt has dropped to 5.8 percent from as high as 7.6 percent in July.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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