Markets have overreacted on Spain: ECB deputy chief
The financial markets have "overreacted" with regard to Spain, European Central Bank deputy president Vitor Constancio said Tuesday as Spanish borrowing costs rose sharply amid renewed eurozone debt tensions.
"Well, we think that markets perhaps overreacted. We hope that all the clarifications and decisions taken by the governments will change market perceptions," Constancio told reporters on the sidelines of an ECB conference.
"We trust that the commitments that have been approved will be fulfilled and the targets will be achieved. It's now a matter, we think, of time that these will really work out," he said, referring to eurozone and Spanish government measures to tackle the crisis.
The eurozone bond markets have been tense in recent days but on Tuesday Spain managed to sell short-term debt, showing that it still has access to the market, but at sharply increased interest rates.
© 2012 AFP