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ECB: Report of bond-cap plan 'misleading', no decision yet

Published on Aug 20, 2012 8:40 PM

FRANKFURT (AFP) - The European Central Bank Monday dismissed as "absolutely misleading" a report that it planned to set a cap on the borrowing costs of debt-wracked euro zone countries.

"It is absolutely misleading to report on decisions, which have not yet been taken and also on individual views, which have not yet been discussed by the ECB's governing council," an ECB spokesman said.

Der Spiegel newsweekly reported on Sunday that the ECB was planning to set a limit on the borrowing costs of individual countries and intervene on the markets to maintain this level.

Spain and Italy have seen their borrowing costs shoot up during the euro zone crisis to levels that forced Greece, Portugal and Ireland to seek a bailout. The so-called spread, or difference, between benchmark German bonds and those issued by debt-wracked countries would be decisive for the proposed rate cap, Spiegel said.

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