Spain borrowing costs dive

MADRID: Short-term financing costs for euro zone struggler Spain more than halved on Tuesday as banks lapped up debt at an auction, with much of the purchasing power said to come from cutrate money to be lent by the European Central Bank.

The euro zone’s debt dilemma remained on view in Greece, however, where borrowing costs rose to 4.68% for just 3 months. The Greek debt agency old euro 1.3 billion of the short-term debt. Economists believe Spain is already in its second recession in three years.