ECB’s Policymaker Believes Spain Can Refinance Itself

In an interview, ECB policymaker Ewald Nowotny affirmed that Spain is currently in a position where it can easily get new financing for its debts by introducing different terms in markets.

Further Nowotny suggested that reports regarding its situation point out that that the country currently needs no aid from European Central Bank's new bond-buying programme. Rather, before asking opting for the programme, it should try to refinance itself as it doesn't face similar structural challenges as faced by Greece.

Previously, ECB launched its bond-buying programme for those euro zone countries, which demand financial help, however, the decision to opt for the programme completely depends upon the country, as the programme includes several stern terms and conditions.

Nowotny emphasizing on the new euro zone's permanent bailout fund, European Stability Mechanism, stated that he would like to assess it before hand, as he is concerned that the fund, instead of making problems simpler will worsen the conditions for the countries as they will have to wait for payouts.

He said, "The cannon will be loaded in time. The question is only will it really go off when it is needed? The decision mechanisms are so many and difficult that there is certain skepticism".