Irish Times. Catalonia seeks €5bn Madrid bailout. 29.08.2012
Catalonia seeks €5bn Madrid bailout
CATALONIA HAS announced that it needs a €5 billion bailout from the Spanish state, highlighting difficulties facing the country’s regions and piling further pressure on the central government.
Catalan regional government spokesman Francesc Homs said €5.02 billion was needed for the region to meet looming debt obligations.
The money is expected to come from Spain’s newly created regional liquidity fund, which contains €18 billion but has not yet been activated.
“Let’s hope it is ready by September, if not we’re in trouble,” Mr Homs said.
An industrial hub with an economy the size of Portugal’s, the northeastern region has debts of €42 billion. In July, Catalonia delayed payment to thousands of health and social sector workers for the month, blaming the central government for the lack of funds.
Read the full article here.