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No Spain request for EFSF bond market intervention -EU exec
July 27, 2012 / 10:33 AM / 5 years ago

No Spain request for EFSF bond market intervention -EU exec

BRUSSELS, July 27 (Reuters) - Spain has not applied to use funds of the European Financial Stability Facility (EFSF), the euro zone’s temporary bailout fund, to intervene on its primary or secondary bond market to bring down borrowing costs, the European Commission said.

French daily Le Monde reported on Friday that euro zone governments and the European Central Bank are preparing to intervene on financial markets to help bring down Spanish and Italian borrowing costs.

The newspaper, which cited unidentified sources, said the ECB was willing to take part in the action on condition that governments agreed to tap the bloc’s bailout funds, the EFSF and the European Stability Mechanism (ESM).

Under the plan, the EFSF could be activated first to purchase Spanish and Italian debt on the primary market, followed by the ESM in September, once it becomes operational.

“This instrument can only be used based on a request from a member state and today there is no request so I am not going to comment on the press reports,” European Commission spokesman Antoine Colombani told a regular news briefing, when asked about the press reports and if Spain or any other country had made a request. (Reporting by Jan Strupczewski; editing by Rex Merrifield)

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