Re: Re: More Economic Bad News for Spain

#111353
angie
Blocked

The truth that Spain seems to be hiding regarding Big Business indebtedness.

Between 50-60% of Spanish Businesses have needed some kind of refinancing in the last 3 years delaying debt payments and putting up the cost of fresh guarantees.

Spain non financial private sector debt is 134% of GDP, higher than any major economy in the world except Ireland whose figures are distorted by multinationals.

Excluding Banks, Spain’s Blue Chip Companies on Ibex35 have combined debt of 222 billion euros, outstripping the market capitalisation of 216 billion euros.

Now the really worrying part:

The number of Spanish Companies who filed for Bankruptcy in 1st quarter of 2012 was up by 21.5% compared to same period of 2011.

Spanish Banks have propped up companies considered ‘too big to fail’, sometime this debt will have to be repaid or the Banks will be stuffed.

So Spain has been using the old trick of ‘Smoke and Mirrors’ to hide the real truth of Spanish Business decline. 🙄