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Spain says rescue not needed for now

Economy minister says the country is well financed and does not need a European rescue for now.
Last Modified: 05 Nov 2012 21:18
Unemployment rates from the Labour Ministry indicate a 2.7 per cent rise in unemployment rates [Reuters]

Spain's treasury is "well financed" for this year and the crisis-hit country will not ask for a rescue from European partners for now, Spanish Economy Minister Luis de Guindos has said.

"The Spanish treasury is well financed this year," he told reporters on Monday on the sidelines of G20 talks in Mexico City. "We have almost closed our financing needs for this year. We have a relatively comfortable liquidity situation."

Spain will issue a new 20-year bond on Thursday, said de Guindos.

This will represent a new test of market sentiment for the country, whose borrowing costs for 10-year bonds increased on Monday.

Madrid has resisted pressure to seek outside help following a banking crisis, a recession and a record 25 per cent unemployment rate.

The Spanish minister said Madrid was "doing its part" to improve its finances, with the conservative government undertaking an "important programme of fiscal consolidation."

Unemployment rises

The comments came as new figures released on Monday indicated a rise in unemployment.

The latest rates from the Labour Ministry indicated a 2.7 per cent rise in October from a month earlier, or by 128,242 people, leaving 4.8 million people out of work.

This was the third straight month the jobless figures rose after a respite during the summer tourism season.

Monthly jobless data records the number Spaniards registered as out of work, while the unemployment rate, which hit a record high of 25 per cent in the third quarter, is an official survey and considered a more reliable gauge of the jobs market.

Separately on Monday, in Jerez de la Frontera, three days of strikes that began on Saturday against town hall austerity cuts left more than 500 tonnes of rubbish uncollected with bags piling up around huge containers in the streets.

Workers of the company, Urbaser, went on an unlimited strike against a plan to axe 125 jobs after the municipality lowered the budget for contractors by 20 per cent for 2013, according to the local press.

"When we arrived at the town hall we found a debt of one billion euros [$1.3bn] for a town of 210,000 inhabitants," said Rosado, whose Popular Party won power in Jerez a year and a half ago.

"We had no choice other than to implement an austerity plan."

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