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
- USD weekly currency update- 26 August 2016
- When Expat Eyes Are Smiling
- 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
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Murcia WILL Request Bailout
After many interviews, press conferences and comments denying any kind of bailout, Ramón Luis Valcárcel, president of the Region of Murcia has confirmed the region is seeking financial assistance from central government according to Spanish newspaper La Verdad.
Valcárcel made the announcement in Brussels where he was chairman of the Committee of the Regions.
Although the words used do not mention bailout or rescue, words which politicians do not like to use, by dipping into the regional liquidity fund setup by central government effectively means bailout and rescue.
The fiasco has enraged the regional government and PP Murcia who themselves have struggled to comprehend why the twists, turns and denials when in reality the bailout request was always on the cards. Yesterday, Valcárcel was making every effort to deny it's need for bailout whilst Vice President and Minister of Economy and Finance, John Bernal said they had decided to make a request - >> READ: Valcárcel Denies Murcia Bailout
Likewise, the mayor of La Union and PP deputy general secretary, Francisco Bernabé, stated in a press conference that the regional government did not plan to use this rescue mechanism, the complete opposite of what Valcárcel said just hours later.
Tumbit reported on Sunday as news broke of the region requesting financial assistance - >> READ: Murcia Requests Bailout From Central Government
Trying to make everything sound normal, Valcárcel said "What I said and what I ordered is that we want to refinance our debt, not through the banks with high interest rates, not through the market with impossible rates, but only with the approval of the State. That is all I ask, that's not a bailout" as quoted by Spanish news agency 'Efe'.
Murcia needs to refinance debt of up to €310 million maturing later this year. Murcia also needs to find an additional €425 million to cover its projected deficit for this year.
The timing is a coincidence given that Murcia may have to pay for Corvera Airport following revelations that the regional government are guarantors for loans totalling €200 million given to the consortium constructing the airport - >> READ: Corvera Airport Hits Financial Hurdle
The terms of using the 'Regional Liquidity Fund' have yet to be finalised, but will no doubt result in further austerity and regional powers being handed to Madrid. Any rescue will not be in place until September 2012 when the fund is fully operational.
Being the second region to request a bailout after Valencia will no doubt shake markets across the world. US markets have already begun dumping euro stocks over fears a full bailout will be required and ultimately the end of the Euro.
Murcia's request for a rescue is small in comparison to Valencia's €3.3 billion. Other regions such as Catalonia and Castilla-La Mancha are considering following in the footsteps of Valencia and Murcia, while Galicia, the Canary Islands, Extremadura, the Balearic Islands and Castilla y Leon have said they will not need a bailout.
Latest News & Stories
- Spain's Socialists say no to Rajoy, prolonging political deadlock
- Spain sees Tourist spend per head at 15 year low
- Spanish Jihadist chatter on the rise say experts, with sights set on Spain
- Spain starts countdown to possible third national election in year
- 1,785 Spanish Drivers apprehended for Drink and Drugs in 3 days
- Spanish retail sales rise 4.9% on year in July
- Vodafone Spain to offer fibre in 750,000 more homes by Dec
- Spanish economy powers ahead as politicians dither
- Socialists to propose law change in bid to avoid Christmas Day elections
- Vodafone Spain expands 4G roaming to 100 countries