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Catalonia owes Spain an enormous 57.5bn

CATALONIA’S regional authority owes the Spanish treasury 57.5bn euros, which is four billion more than a year ago and the highest debt of the country’s autonomous communities, according to Government data.

Almost 75% of the Catalan Generalitat was borrowed from the Spanish Government’s Autonomous Liquidity Fund (ALF).

The fund was created in July 2012, during the eurozone debt crisis, to help Spain’s Autonomous Communities plug gaps in their books without having to borrow from financial markets.

But Cataluña’s debts to the fund grew from more than 53bn euros on 30th September 2017 to more than 57.5bn a year later, according to the latest treasury data.

The figures come as the Generalitat announced plans to begin borrowing from the Government’s Financial Facility Fund (FFF) and to cease borrowing from ALF.

The authority has still requested more than 6.7bn from the ALF, yet it also plans to borrow between 8-8.5bn euros from the FFF, according to documents prepared for investors.

The FFF allows regional authorities to borrow from the state, it gives them less control over the money loaned.

Pere Aragones, the Generalitat’s finance spokesperson, said the move was an important step towards getting the region’s finances in order.

 

Short URL: http://www.canarianweekly.com/?p=45255

Posted by on Jan 4 2019. Filed under Local News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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