CNBC. Avoid Spain, but Buy Spanish Regions. 06.02.2013


Spanish regions are often described as Prime Minister Mariano Rajoy‘s biggest headache: they’re highly indebted and decentralized. But RBS has found a sweet spot in Spain’s strongest regions: Madrid, Navarre, Castilla y Leon, as well as the Canaries and the Basque Country, with returns of 14 percent over the past three months since the bank initiated the trade.

The strongest regions operate under better conditions than Spain as a whole: they’re on track to meet their 1.5 percent deficit target for 2012-well below the country’s national target of 6.3 percent.

In land regions such as Castilla y Leon, Navarre and the Basque are less risky than coastal ones and benefit from an industry-orientated economy rather than construction and tourism. Navarre posted limited growth of 0.6 percent, compared to a 2.7 national contraction throughout the recession.


Read the full article here


Posted on February 6, 2013, in BY COUNTRY, BY DATE, BY LANGUAGE, BY SOURCE, CNBC, English, February 2013, United States of America. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s