How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
...you can learn Spanish at a variety of locations across Spain, online or residential and day courses in Spain?
Regardless of your standard, and whatever level you wish to reach Don Quijote has a program to suit your needs!
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Corvera, Castellon & Ciudad Real : THIS is how you run a private airport!
- Daily Brief - Friday 11 July 2014
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Pensioners 'misled' by Co-op Bank
- UK Inflation no problem for Governor Carney
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
Spain struggles to meet regions' 36 bln euros debts
Top Spanish officials are at odds over how to help the country's highly indebted regions refinance €36 billion of debt this year, government sources told Reuters on Wednesday.
This figure, which was revealed in the budget plans from 17 autonomous communities, compares with previous public data of around €8 billion of bonds maturing in 2012.
The difference is due to bilateral loans from Spanish banks to the regions worth €28 billion that were not made public previously, and it could unnerve further investors concerned by the capacity of Spain to curb its public finances and reform its banking sector.
Spain's weak banks and overspending regions are at the heart of the euro zone debt crisis due to concerns that expensive bail-outs of ailing lenders, such as the country's fourth largest lender Bankia, could force the country to seek international aid.
Spain's government last week admitted its 2011 public deficit was higher than it had previously reported after 3 regions adjusted accounts.
The government sources said the central administration now aimed at putting forward a new mechanism to back regions' debt as soon as early June.
But, the sources said, Economy Minister Luis de Guindos and Treasury Minister Cristobal Montoro disagreed on the final form the new instrument should take.
De Guindos favours a centralised mechanism which would control and issue debt for the regions while Montoro would rather see a less intrusive instrument which would fall under the umbrella of his ministry and based for instance on credit lines from the central government to regions which meet their deficit targets.
"Montoro is the one who has to deal with the regions and make sure that they meet their deficit targets. You can't tell them on one side that they have to be austere and on the other side give them unlimited liquidity," one of the sources said.
CATALONIA AND VALENCIA
After weeks of negotiations, Montoro last Thursday gave his blessing to spending cuts plans presented by all 17 regions except for the small north-western one of Asturias, which will have to present a new budget within 15 days.
The regions account for around 50% of the country's overall public spending and are responsible for their healthcare and education budgets, where cuts are likely to fall.
The central government has authorised them a deficit of €15 billion this year, bringing their funding needs to €50 billion overall.
Their commitment to savings costs this year will be key to helping the country try and meet an ambitious target of slashing the public deficit to 5.3% of GDP this year from 8.9% in 2011.
The situation is however especially difficult in Spain's 2 most indebted regions, Catalonia and Valencia, which account for about 60% of all regional debt maturing this year, the data released by the regions show.
Both autonomous communities needed to refinance more than €10 billion this quarter and more than €8 billion in the second half of the year.
Earlier this month, Valencia had to pay a very high price of 7% to refinance €500 million of debt with a six-month maturity, fuelling concerns internationally about the sustainability of the country's finances.
The risk premium investors demand to hold Spanish over German debt remained steady at around 484 basis points on Wednesday after reaching last week record highs at over 500 basis points.
Latest News & Stories
- Earthquakes hit Southern Spain
- Gibraltar dismisses Spain’s ‘fanciful’ tax claims
- 1 Year Since Paramount Murcia Promise
- Spain sees EU130 Mln in aid to Canary tomatoes in 5 years
- Number of Foreign Students Studying in Spain Falls
- Spanish cigarette sales plummet 50% in last 5 years
- Euro zone trade surplus rises more than expected in June
- Spain rules Gay man has no right to partner's pension
- Spain's bad loans ratio slips to 13.1% in June
- The Yorkshireman introducing Rugby League to Spain
- Dacion en Pago : Handing Your Property Back to the Bank
- What is the Euribor ?
- When you can’t pay the Mortgage