Traducción de «Diferencial de tasas de interés con cobertura a plazo » (Español → Inglés) :

Fulfilment of the medium-term budgetary objectives is a fundamental precondition in this regard while deviating from them could trigger soaring interest rates and thereby threaten growth and recovery.

Where no reliable credit spread can be derived from the default statistics referred to in the second subparagraph, the fundamental spread shall be equal to the portion of the long-term average of the spread over the risk-free interest rate set out in points (b) and (c).

A portfolio management practice which aims to reduce the duration risk by combining an investment in a long-dated bond with an interest rate swap or to reduce the duration of an AIF bond portfolio by concluding a short position on bond future contracts representative of the interest rate risk of the portfolio (duration hedging) should be considered as a hedging arrangement provided that it complies with the hedging criteria.

Long-term interest rate differentials with the euro area were around 0.4 percentage points in the period January-August 2004.

The spread vis-à-vis euro area long-term interest rates declined markedly since 2003, from around 50 basis points to currently minus 10 basis points, reflecting among other things a negative policy rate differential vis-à-vis the euro area.

2. Points out that the report singles out, among many, four factors: depressed business and consumer sentiment, resulting in weak consumer demand, economic cycle, currency turmoil and high long-term interest rates in 1994, as accounting for the disappointing growth performance in 1995 (i.e. 2.5 per cent); welcomes, in this respect, that the Commission has rightly recognized monetary policies and monetary turbulences as being responsible for the recent slowdown and negative effects on employment; urges, therefore, the monetary authorities to reduce their interest rates further to the extent possible;