EU Loan to Spain Has 15-Year Maturity, 5-Year Grace Period
06/12/2012| 09:05pm US/Eastern
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The European Union loan to Spain will have a 15-year maturity, carry a 3% annual interest rate and have a five-year grace period, so Spain won't have to start making payments until 2017, reports El Mundo in its Wednesday Internet edition, citing people close to the negotiations.
Spain's borrowing costs, as measured by the 10-year government bond, reached a high of 6.72% Tuesday.
While the EU has offered to lend up to EUR100 billion ($125 billion) to Spain, the definite figure and the final details of the EU aid won't be known until next week, when an audit on the Spanish banking sector carried out by two independent consulting firms hired by the government will be completed, the paper adds.
Newspaper website: www.elmundo.es
-Write to Enza Tedesco at enza.tedesco@dowjones.com
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