German lawmakers approved a rescue for Cyprus as Finance Minister Wolfgang Schaeuble warned that refusing aid to a fifth crisis-ravaged state risked triggering a sovereign default and contagion to other euro nations.
The political turmoil in Venezuela that erupted in electing Hugo Chavez’s successor is causing emerging-market debt investors to flood into Argentina, chopping its relative cost of borrowing by the most in four years.
Slovenia eased concern that it will be the next euro-area state to need a bailout as investors scooped up twice the targeted amount in a debt sale yesterday. The country’s bonds surged and its default risk tumbled.
Slovenian Prime Minister Alenka Bratusek said the government needs more time to repair public finances as an asset-sale plan failed to quell concern that the euro-area nation will be next to seek a rescue.
Venezuela’s bonds tumbled the most in two months and the nation’s default risk rose as opposition parties challenged the election victory of ex-President Hugo Chavez’s handpicked successor, Nicolas Maduro.