MADRID Jan 31 Spain's market regulator said on
Thursday it lifted its ban on short-selling stocks and bonds,
which were targeted by speculators during last year's euro zone
debt crisis turmoil.
The regulator imposed the ban in July during a massive
sell-off in Spanish sovereign debt and shares. Stocks and bonds
have rallied since the European Central Bank said it would act
as a backstop to bets against peripheral euro zone countries.
Spain's borrowing costs have greatly eased since the height
of the crisis during the summer, and funding is easier for the
country's banks and corporations.
(Reporting By Sonya Dowsett; Editing by Fiona Ortiz)