Spain’s borrowing costs shattered euro-era records today after credit rating agency Moody’s downgraded its debt close to junk-bond status and warned of a growing risk of a full-blown sovereign bailout.
A recent deal that calls for Eurozone powers to extend a bailout loan of up to €100 billion (£81 billion/US$125 billion) to salvage Spain’s stricken banks failed to stop an intensifying storm on the debt market.
The interest rate on Spanish 10-year Government bonds has now soared to 6.9650%, the highest since the birth of the single currency in 1999, prompting fears that the country may need a bailout similar to the one in Greece.
But Madrid 2020 insist that Spain is still capable of successfully hosting the Olympics and Paralympics if they beat rivals Istanbul and Tokyo at the International Olympic Committee (IOC) Session in Buenos Aires on Sept. 7, 2012.
“There are no changes as far as we are concerned,” Theresa Zabell, the Madrid 2020 international relations chief executive, told insidethegames. “It is an economic issue that affects some of our banks that were in a bad situation and have received a loan from the European Union to overcome this difficult moment.
“We must remember that our Olympic bid has 78 per cent of its sporting infrastructure already built and therefore does not need to build any infrastructure in the near future, hence not needing to make large investments at this stage,” Zabell continued. “The measures taken by the EU will not have any impact on our bid and we continue working as usual with great motivation and our sights set on Buenos Aires in September next year.”
Against this background, Madrid 2020 has now updated its logo to include the Olympic rings.
“It’s another step forward in our journey,” said Alejandro Blanco, the President of Madrid 2020. “We are now a Candidate City and the IOC has also given a very positive assessment of our project. We now have to work hard to deliver a comprehensive dossier that shows everyone the strength of our bid and will help bring us the Games, which will provide a major boost for Spain.”
Insidethgames.biz is a blog of the British Olympic Association. It discusses issues related to the Olympic Movement and the upcoming London Summer Olympics. This article is reprinted here with permission of its editiorial staff. Readers can contact the writer of this story at email@example.com,