Valencia Regional Government seeks bailout

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This topic contains 6 replies, has 3 voices, and was last updated by Profile photo of logan logan 4 years, 4 months ago.

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  • #56940
    Profile photo of logan
    logan
    Participant

    Today the Valencia regional government requested a bailout from central government. They owe an estimated €80bn and needs €20bn immediately. No surprise, it’s been predicted for months.

    Ibex falls 5.75%, Euro loses more ground, Sterling over 1.28. Spanish 10 year bond yields 7.35%. Unsustainable.

    The big question now is how the central government can bail them out without assistance from the EU. Other regions may now follow.

    This is a separate issue from the bank deal bailout which was approved by the German parliament today, just.

  • #111036
    Profile photo of angie
    angie
    Spectator

    Is the Valencia Regional Government in the most dire situation in Spain or are the other Regional Governments in as bad a way as them? Are there regional stats for this?

    No doubt if any are, they will also ‘Hunt’ a Central Government bailout too 🙄 🙄

  • #111037
    Profile photo of logan
    logan
    Participant
  • #111044
    Profile photo of angie
    angie
    Spectator

    Well, that’s put me right off moving to Valencia now 😛

    Spain’s problems just got a whole lot worse methinks 🙄

  • #111056
    Profile photo of Chopera
    Chopera
    Participant

    What is Rajoy going to ask from Valencia in return for a bailout?

  • #111061
    Profile photo of logan
    logan
    Participant

    Loss of some sovereignty Chopera and more direct controls. No bad thing.

  • #111095
    Profile photo of logan
    logan
    Participant

    Yesterday Murcia regional government became the second domino to fall in the bailout stakes. How long before the largest regional economy of Catalonia falls?

    I have been warning for at least 3 years on here that Spanish regional government spending was out of control under Zapatero who simply turned a blind eye. The PP took over and tried to hold the line but this disaster was always going to happen.

    Collectively the Spanish regions have to repay or refinance €36bn Euros in 2012. The central governments has only set aside €18bn.

    I think we will soon see the end of autonomous regional government in Spain and that’s no bad thing.

    http://www.guardian.co.uk/world/2012/jul/22/markets-fear-for-spanish-economy

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