Arab Today, arab today spain says solvency assured as investors flee
Last Updated : GMT 19:18:58
Arab Today, arab today
Arab Today, arab today

Spain says solvency assured as investors flee

Arab Today, arab today

Arab Today, arab today Spain says solvency assured as investors flee

Madrid - AFP

Spain\'s government declared confidence in the nation\'s solvency Friday as investors fearing a financial breakdown sent its debt risk premium soaring to a euro-era record. \"We want to send a message from the government of Spain of confidence, of security in the solvency of Spain as a country,\" Budget Minister Cristobal Montoro told a news conference. The solution to the market turmoil lay with the euro and the European Union, Montoro said after a cabinet meeting. \"We are making reforms, we are cleaning up the banking and the public sectors and that, along with other reforms, will create growth, employment and allow us to exit the crisis with an integrated Europe.\" The debt risk premium -- the extra rate charged on Spanish bonds when compared to safe German debt -- hit 5.48 percentage points, the fourth record in five days. As a sense of near panic took hold, latest figures showed a net 97 billion euros ($121 billion) of investors\' money fled Spain in the first three months of the year -- the highest on record. Further destabilising the market is the prospect of a Greek election June 17, which could lead to its exit from the eurozone with unknown consequences for the region, and in particular number-four economy Spain. The Italian government announced it had invited Spain, France and Germany to a Rome summit on June 22 to grapple with the crisis just days after the Greek decision. On the markets, investors fret over where Spain will find the money to repair the balance sheets of its stricken banks and at the same time rescue regional governments struggling to finance heavy debts. Spain\'s 2008 property sector crash evaporated much of the value of banks\' real estate assets; and it eradicated at a stroke a source of plentiful income in the regions. Montoro had some good news, however, reporting that the regional governments, responsible for half of state spending, achieved balanced budgets overall in the first quarter of 2012. Adding up the deficits of the 17 regional governments, \"the sum is zero\", he said. Regions managed to trim budgets through austerity measures and at the same time they benefitted from larger transfers of funds from the central government during the period, he said. Budget deficit figures can fluctuate during the year, however, depending on when households and businesses pay their taxes, and on the timing for major items of expenditure. Many of the Spanish regions are locked out of the financial markets, which demand exhorbitant interest rates to lend them money, and Montoro said the government would soon come to their help. As soon as next week, the government would approve a \"financial instrument to help liquidity in the autonomous regions\", he said. The Economy Ministry said this week it would approve on Friday a scheme for the regions to jointly issue bonds, so-called hispanobonos, which would be guaranteed by the state. The government rode to the rescue once already in mid-May, taking out a 30-billion-euro line of credit to help towns and regions to settle pending invoices with suppliers.  In 2012, the regions have nearly 36 billion euros to pay in debt financing, and Spanish media say they must raise another 15-16 billion euros to finance their public deficits. Last year, the shortfall between spending and income in the regions was responsible for two-thirds of the country\'s deficit slippage. Spain registered a public deficit of 8.9 percent of economic output instead of the promised 6.0 percent last year; and the regions posted a deficit of 2.94 percent of output instead of the required 1.3 percent.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spain says solvency assured as investors flee Arab Today, arab today spain says solvency assured as investors flee

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spain says solvency assured as investors flee Arab Today, arab today spain says solvency assured as investors flee

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday