Municipal Governments in Spain Running Out of Cash
Tweet
Share
E-mail
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).
"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).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Crude Inventory Fell 7.2 Million Barrels Last Week - EIA
- Nasdaq lags on angst over AI spending ahead of earnings reports
- Wall St falls as tech earnings spark AI spending worries and oil hits $100
Create E-mail Alert Related Categories
ETFs, Market CheckSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
