Spain: Bailout pressure easing since ECB bond deal

Last Updated: Wed, Oct 31, 2012 18:00 hrs

A government official says the European Central Bank's offer to buy bonds has lowered Spain's borrowing costs and taken the heat off the country to seek a bailout in the short term.

The official, who spoke on condition of anonymity in line with government policy, said pressure on Spain has eased given the positive investor reaction to the ECB's offer and the fact that Treasury has already covered most of its 2012 borrowing needs.

Prime Minister Mariano Rajoy reiterated Wednesday he saw no immediate need to ask for help but did not rule it out in the future.

Spain, which is in a double-dip recession and has an unemployment rate of 25 percent, has been under pressure to tap the bond-buying program since it was announced in September.

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