Municipal Governments in Spain Running Out of Cash
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The President of Spain's Catalonia, Arthur Mas, said the region is running out of cash because of difficulties it is having refinancing debt. It is seeking help from the central government.
"We don't care how they do it, but we need to make payments at the end of the month," Mas told the media.
Debts in regional governments in Spain have been growing as borrowing costs spin out of control. Catalonia, which represents one fifth of the Spanish economy, has more than 13 billion euros in debt to refinance this year, as well as its deficit. Spanish regions have 36 billion euros ($45 billion) to refinance this year, as well as a deficit of 15 billion euros.
Catalonia's neighbor, Valencia, paid 7 percent for a six-month loan it made recently.
Investors can gain quick access to Spanish equities through ETF iShares MSCI Spain Index (NYSE: EWP).
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"We don't care how they do it, but we need to make payments at the end of the month," Mas told the media.
Debts in regional governments in Spain have been growing as borrowing costs spin out of control. Catalonia, which represents one fifth of the Spanish economy, has more than 13 billion euros in debt to refinance this year, as well as its deficit. Spanish regions have 36 billion euros ($45 billion) to refinance this year, as well as a deficit of 15 billion euros.
Catalonia's neighbor, Valencia, paid 7 percent for a six-month loan it made recently.
Investors can gain quick access to Spanish equities through ETF iShares MSCI Spain Index (NYSE: EWP).
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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