FRANKFURT/MADRID (Reuters) – Spain plans to auction up to 3.5 billion euros ($5 billion) of bonds on Thursday as the European Central Bank meets on policy, with investors hoping the ECB will signal a more aggressive approach to fighting the euro zone’s debt crisis.

Spanish Economy Minister Elena Salgado, speaking on Wednesday night after a crisis meeting on the economy with Prime Minister Jose Luis Rodriguez Zapatero, said the bond sale would take place as scheduled despite a surge in Spanish and Italian bond yields to 14-year highs in the past several days.

FRANKFURT (Reuters) – The European Central Bank raised interest rates for the second time in three months on Thursday and signaled a further hike is likely this year to tackle inflation despite the intensifying euro zone debt crisis.

The ECB also offered help to hard-pressed Portugal after ratings agency Moody’s downgraded its debt to junk status this week, pledging to keep providing it with liquidity regardless of ratings.

FRANKFURT/ATHENS (Reuters) – As the European Union struggles to bail out debt-stricken countries, a long-term trend could doom its efforts regardless of how much money it pours in: deposit outflows from commercial banks.

Savers and investors in Greece and Ireland are withdrawing money out of concern about the health of the banks, and because they fear the consequences if their countries are eventually forced out of the euro zone, which would probably mean the introduction of national currencies at sharply devalued levels.

BASEL, Switzerland (Reuters) – Global interest rates must rise to avoid high inflation becoming entrenched, the Bank for International Settlements said on Sunday.

It also warned that delaying deficit cuts could risk intensifying the sovereign debt crisis and have grave consequences were investors to lose confidence in a major economy such as the United States.

BASEL, Switzerland (Reuters) – Global interest rates must rise to avoid high inflation becoming entrenched, the Bank for International Settlements said on Sunday.

It also warned that delaying deficit cuts could risk intensifying the sovereign debt crisis and have grave consequences were investors to lose confidence in a major economy such as the United States.

BASEL, Switzerland (Reuters) – Global interest rates must rise to avoid high inflation becoming entrenched, the Bank for International Settlements said on Sunday.

It also warned that delaying deficit cuts could risk intensifying the sovereign debt crisis and have grave consequences were investors to lose confidence in a major economy such as the United States.

FRANKFURT, June 22 (Reuters) – The ghost of Lehman Brothers
stalks European financial markets as central bankers warn a
Greek debt default could trigger even worse turmoil than the
collapse of the U.S. investment bank. But there are reasons to
think the damage could be contained more easily.

Investors are better prepared than they were for Lehman’s
bankruptcy in September 2008. Vulnerabilities in bank balance
sheets are clearer. And the European Central Bank has developed
a range of tools which it could use to stabilise markets.

FRANKFURT/LONDON (Reuters) – The world’s biggest banks face a capital surcharge of up to three percent in a bid to keep taxpayers off the hook next time a lender gets into difficulty, Bundesbank and industry officials said on Friday.

But a surcharge of between 3 percent and around 3.5 percent will be imposed if a bank grew significantly and as a result posed larger systemic risks, banking sources told Reuters.

FRANKFURT (Reuters) – Ratings agency Fitch has opened the door to a possible compromise deal on Greece’s debt crisis that would allow the European Central Bank to continue accepting Greek bonds as collateral in its funding operations.

The ECB is proving a major stumbling block in agreeing a second rescue plan for Greece as it has threatened to refuse to accept restructured Greek bonds as collateral in its lending operations in the event of a default or a “restricted default”.

FRANKFURT (Reuters) – Ratings agency Fitch has opened the door to a possible compromise deal on Greece’s debt crisis that would allow the European Central Bank to continue accepting Greek bonds as collateral in its funding operations.

The ECB is proving a major stumbling block in agreeing a second rescue plan for Greece as it has threatened to refuse to accept restructured Greek bonds as collateral in its lending operations in the event of a default or a “restricted default.”