Spanish Debt reaches all time high

The Spanish public debt has reached another record at 75.9% of G.D.P. debt, the highest level in a century.
The total debt has increased 14% in the second quarter and now stands at 804 billion 388 million €. The debt is increasing faster in the central administration rather than the regions.

The numbers have been released for the second quarter this morning by the Bank of Spain, and shows that central administration debt rose by 4.4% to 617.5 billion €, which represents 58.3% of the GDP.
Debts in the regions have increased less, up 2.8% to reach 150.578 billion €.

Meanwhile Andalucía is prepared to ask for a rescue from the Autonomous Liquidity Fund (FLA) which is understood to be at least 2.4 billion. The Hacienda Ministry has not made it clear if it will give an advance of 1 billion € to the region, and the Junta wants to know the conditions before formalising its request.

The Economy Minister, Luis de Guindos, has insisted that the Eurogroup is not going to ask Spain for more cuts in exchange for funds from the European Central Bank. But he did say, speaking in Nicosia, that he would be announcing more reforms to reduce the deficit in the next few days.

Germany has said they don’t see any direct recapitalisation of Spanish banks until January.

source – Typically Spanish

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