Search

 

Cablegate: Madrid Economic Weekly, February 15-19

VZCZCXRO8912
RR RUEHIK
DE RUEHMD #0194 0521244
ZNR UUUUU ZZH
R 211244Z FEB 10
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 1979
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHLA/AMCONSUL BARCELONA 4392
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS MADRID 000194

SIPDIS

STATE PASS USTR FOR D.WEINER AND J.GROVES
COMMERCE FOR 4212/DON CALVERT
TREASURY FOR OIA/OEE R.JOHNSTON

E.O. 12958: N/A
TAGS: ECON EFIN SP
SUBJECT: MADRID ECONOMIC WEEKLY, FEBRUARY 15-19

Contents:

EFIN: Demand for GOS Bond Issuances May Signal Reduced Market
Concern
ECON: Anti-Crisis Commission Formed
EFIN: Loan Delinquency Rates Continue to Rise


Demand for GOS Bond Issuances May Signal Reduced Market
Concern

1.(U) The Treasury issued 6.58 million euros of 12- and
18-month paper on February 16, 5 billion euros of 15-year
bonds on February 17, and 958 million euros of 30-year bonds
on February 18. Demand was heavy, as over 14 billion euros of
orders were placed for the 15-year bonds and 1.9 billion
euros of orders were placed for the 30-year bonds. The
interest rates were 80 to 90 basis points above those of
similar German debt; two weeks ago, spreads on other Spanish
debt had briefly been above 100 basis points. Secretary of
State for Economy Campa said the high demand was a positive
sign. President Zapatero credited GOS efforts to combat a
market "mistake and misjudgment." Campa visited New York and
Boston to discuss the GOS' economic plans with institutions
interested in Spanish debt. (El Pais, 2/18 and 2/19)

Anti-Crisis Commission Formed

2.(U) President Zapatero announced an Economic Anti-Crisis
Commission headed by Minister of Economy/Finance Salgado,
Minister of Industry, Tourism, and Commerce Sebastian, and
Minister of Public Works Blanco. The Commission will have
two months to work with opposition parties on drafting an
acceptable economic plan for presentation to the Congress.
The Commission is to present its first draft on February 25
when it begins negotiations with opposition party members.
Opposition Popular Party leader Mariano Rajoy expressed
skepticism, saying the new plan would have to be different
from Zapatero's previous plans in order to win his party's
support. Some reports expressed surprise over the exclusion
from the commission of Labor Minister Corbacho at a time when
many see unemployment approaching 20% as the country's most
serious economic problem and others see labor reforms as a
necessity. (El Pais, 2/19; ABC, 2/18)

Loan Delinquency Rates Continue to Rise

3.(U) Banking system loan delinquency rates rose to just over
5% in December, the highest rate since May of 1996. Although
savings banks ("cajas") as a group have generally reported
higher delinquency rates than banks as a group, bank and caja
rates were nearly identical in December, in part because
Spain's second largest bank, BBVA, reclassified 1.8 billion
euros of loans as doubtful. Consumer credit delinquency
increased, while mortgage delinquency rates remain moderate,
helped by the decline in the Euribor rate that sets
variable-rate mortgage payments. (El Pais, 2/19)


CHACON

© Scoop Media

 
 
 
World Headlines

 

IPPPR: The Independent Panel Calls For Urgent Reform Of Pandemic Prevention And Response Systems

Expert independent panel calls for urgent reform of pandemic prevention and response systems The Independent Panel for Pandemic Preparedness and Response is today calling on the global community to end the COVID-19 pandemic and adopt a series of bold and ... More>>

NGO Coalition On Human Rights: Call For A Stop To Police Brutality In Fiji

A viral video has circulated online showing two police officers utilising disproportionate and excessive force in detaining the suspect, an individual half their size. In the video it shows the man’s head being pressed down on the ground, his arms being ... More>>

UN: India’s New COVID-19 Wave Is Spreading Like ‘Wildfire’, Warns UN Children’s Fund

7 May 2021 A new wave of COVID-19 infections is spreading like “wildfire” across India, leaving many youngsters destitute, the UN Children’s Fund UNICEF said on Friday. In the last 24 hours, India registered 3,915 coronavirus deaths and 414,188 ... More>>

Focus On: UN SDGs

UN: Economic Recovery Under Threat Amid Surging COVID Cases And Lagging Vaccination In Poorer Countries

New York, 11 May — While the global growth outlook has improved, led by robust rebound in China and the United States, surging COVID-19 infections and inadequate vaccination progress in many countries threaten a broad-based recovery of the world ... More>>

Study: Cut Methane Emissions To Avert Global Temperature Rise

6 May 2021 Methane emissions caused by human activity can be reduced by up to 45 per cent this decade, thus helping to keep global temperature rise to 1.5 degrees Celsius in line with the Paris Agreement on climate change, according to a UN-backed ... More>>

UN: Learning From COVID-19, Forum To Highlight Critical Role Of Science, Technology And Innovation In Global Challenges

New York, 4 May —To build on the bold innovations in science, technology and innovations that produced life-saving solutions during the COVID-19 pandemic, the UN will bring together experts to highlight measures that can broaden the development and deployment ... More>>