Translation of "Zinsaufschläge" in English

The improvement in the overall fiscal situation has contributed to the decrease in the interest premium paid on debt.

A poorer economic development in a Member State justifies a higher interest spread.

That is why interest-rate spreads in the eurozone periphery are widening again now.

These include the afore- mentioned collateral, interest mark-ups and strict consolidation stipulations as conditionality.

By setting up a trust fund, as proposed by the Party of European Socialists, we would ensure that Member States coming under attack from unscrupulous speculators could be supported without direct recourse to taxpayers and could ensure lower spreads.

By contrast, if the threshold is set low enough to bring spreads down from panic levels, purchases will be more substantive, but at the expense of reducing considerably the effective haircut on private holders.

With interest-rate spreads having compressed sharply, and with the threat of a meltdown averted, both domestic and foreign investors continue to return to peripheral economies, thereby alleviating severe credit rationing.

Even in the US corporate sector, defaults will rise, owing to sharply higher corporate bond spreads.

And widening interest-rate spreads on government bonds do not bode well, either, as this will quickly lead to pressure for further spending cuts.

Interest-rate spreads for Italy and Spain are widening again, while borrowing costs for Portugal and Greece remained high all along.

The risk premia that financially distressed countries must pay remain high and signal continuing risk.

Unfortunately, along with this life support came the pain of withdrawal – not only for asset-dependent consumers and businesses in the United States, but also for foreign economies dependent on capital inflows driven by QE-distorted interest-rate spreads.

Not only the trade balance must be taken into account here; consideration must also be given to the investment income account, which is an important factor in current account deficits, especially in countries in crisis (recently increased because of the sharp rise in national spreads).

Bond spreads surged to record levels as markets lost confidence in the ability of the Greek economy and government to pay its debts, triggering the sovereign debt crisis.

The ultimate adoption of the euro will benefit accession countries by reducing interest rate premia , real interest rates and the risk of speculative attacks .

In so far as the swap rate (mid-swaps) was chosen as the reference figure, however, the interest rate premium of a silent partnership contribution corresponded largely to the specific liability remuneration of the silent partnership contribution, since the swap rate interest premium relative to federal bonds corresponded roughly in market terms to the interest premium of ‘covered’ bank bonds relative to federal bonds and could therefore also be converted into interest premiums compared with Euribor.

As in 1987, intense competition for mandates amongst inter national banks prevented any generalized tightening of spreads on new credits despite a sharply stronger demand for funds.

Southern Europe, however, is pushing hard for a complete changeover to Eurobonds to get rid of the interest-rate premiums relative to Germany that markets are demanding of them.

Due to the increase in risk premiums that investors are demanding, Portugal, Ireland and Spain will have to reduce their capital imports just as the US will have to do, whose bogus securities no one wants any more.

However, according to the convincing expertise of the Bundesbank, such interest rate spreads only reflect the scepticism of market participants that individual Member States will show sufficient budgetary discipline to stay permanently solvent.

The degree of risk aversion has generally increased because of the crisis.

Equity prices fell, especially in Europe, high-yield credit spreads widened significantly, and yields of safe haven assets such as short-maturity German bunds fell into negative territory.

According to the European Central Bank, these spreads are partly based on fear – declared to be irrational – of investors of a reversibility of the euro.

This narrowing of spreads has mitigated to some extent the rise in underlying interest rates in the bond market.

The classification of the OMT Decision as an act of economic policy is supported by its immediate objective, which is to neutralise spreads on government bonds of selected Member States of the euro currency area.

World trade growth also picked up, and net private capital flows to emerging market and developing countries increased, as emerging market bond spreads narrowed.