Financial Times FT.com

Fears at rise in Spanish financing costs

By Leslie Crawford in Madrid

Published: June 14 2007 19:37 | Last updated: June 14 2007 19:37

The Spanish housing market was not heading for a crash, said the Bank of Spain, although it warned lenders against lowering credit standards as the country’s property boom drew to a close.

Miguel Angel Fernández Ordóñez, the central bank’s outspoken governor, indicated he was far more worried about the dramatic rise of financing costs at Spanish companies, which have borrowed heavily to fund an acquisition spree and to build speculative stakes in takeover targets.

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