Valencia Regional Government seeks bailout

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    • July 20, 2012 at 3:14 pm #56940
      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.

    • July 20, 2012 at 3:45 pm #111036
      angie
      Blocked

      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 🙄 🙄

    • July 20, 2012 at 4:01 pm #111037
      logan
      Participant

      Detail here:
      http://www.reuters.com/article/2012/07/20/spain-debt-idUSL6E8IKF7E20120720

      Stats in March 2012 here:
      http://pragcap.com/spains-regional-debt-problem-is-escalating

      How long before Castille La Mancha falls?

    • July 20, 2012 at 5:32 pm #111044
      angie
      Blocked

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

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

    • July 20, 2012 at 9:39 pm #111056
      Chopera
      Participant

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

    • July 21, 2012 at 6:41 am #111061
      logan
      Participant

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

    • July 23, 2012 at 6:24 am #111095
      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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