People should not fear for Spain's future because of the situation in Cyprus, according to the country's economy minister. Speaking ahead of the bailout that was approved early this morning (March 25th), Luis de Guindos told Europa Press that there has not been any flight of bank-deposits from Spain and the problems in Cyprus are unique, Reuters reported.

"To generalise the Cypriot situation to other economies in the eurozone is completely out of place," he said. This flies in the face of those that have predicted the crisis in Cyprus threatened other European nations, specifically the weaker members. However, Spain is not deterred and is arguably quietly confident about its position. Mr de Guindos revealed that the country has "absolutely" ruled out asking for international aid and things are looking up, with the yield on Spain's ten-year benchmark bond falling to below five per cent from more than 7.5 per cent based on European Central Bank figures, the newspaper recounted.

This means "Spain's accounts have greater credibility now" and there is likely to be almost one per cent growth next year, despite a high level of public debt. Figures from the central bank showed that public sector debt increased by 20 per cent last year, with borrowing costs rising to €884.4 billion (£763.2 billion approximately) at the end of December from €736.5 billion (£635.5 billion) in 2011. This is the equivalent to 84.1 per cent of gross domestic product  - up from 69.3 per cent in 2011 and 77.3 per cent in the penultimate quarter of 2012.

Nonetheless, Spain is determined that the Cypriot bailout will not affect their recovery and for those considering Spanish property investment this is undoubtedly good news. While the current financial crisis has made real estate more affordable than ever for buyers, over the long term overall financial stability in the country is desirable. Of course, the rental market in popular coastal areas of Spain remains strong, meaning investors will still turn a profit if they they buy the right property in the right location.



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