MADRID | The Corner | In spite of, or maybe, thanks to the so-called Spailout (2012), Spain is today one of Europe’s driving forces. The International Monetary Fund’s estimates on global economy point to the country as the outperformer of the Eurozone for the first time in six years. Its GDP would grow by 2% this year and 1.8% in 2016.
Market reaction to Spanish sovereign downgrade by the ratings agency may not have shown visible concerns on Thursday, but the credibility of Madrid’s and Berlin’s recovery plans is ebbing away.
The Spanish tether already seems overstretched. On Monday, the national institute for statistics published fresh data confirming a forecast released days before by the country’s central bank, which warned of a contracting GDP: at -0.4 percent, records for the second quarter of the year were indeed 0.1 percent worse than for the first three months. Private consumption and investment have fallen, year on year rates of industrial prices have risen…
MADRID | The chain of default warnings is getting larger. If the regions of Murcia and Catalonia confirm they need help from the €18-billion central fund to repay its debt maturities, as Valencia explicitly did on July 20, the autonomous bailout would reach so far €7.7 billion. Of them, €6 billion could be made available with almost immediate effect, as Loterías del Estado would be the lender. The regions’ short-term…
MADRID | The extensive sell-out on Friday shows the desperate situation Spain is facing. Shattered confidence on the government ability to overcome a looming crash landing, is sending shivers down the spine of investors. People are starting to bet Spain will be forced to bailout one of these days. But, unlike other salvaged countries, its sheer size prevents a rescue package from providing a way out in soothing its woes….
MADRID | Words containing the Latin suffix “tio” tend to raise passionate sentiments. Just think of “revolution” or even “Constitution”, a rather harmless expression nowadays that fuelled bloody rifts in the 19th century. Banking “resolution” is leading to similar high-pitched controversies. Not to mention “liquidation”, a reference readily subject to censorship as the Bank of Spain governor has recently discovered. The recommendation to ensure his full independence apparently will have to wait…
how do i get back my ex girlfriend By Luis Arroyo, in Madrid | Changing the goal posts… Again, Brussels rectified. The euro finance ministers Ecofin made this morning the decision of not waiting until 2013 to release at least part of the capital aid package. A third of the total sum of €100 billion will be available in July. The connotations of this change of mind, though, go beyond…
home loan with bad credit rating By www.valenciaplaza.com | Citigroup strategist José Luis Martínez believes the importance of the delay in the Spanish request for capital to bailout the country's banking sector has been overblown by commentators. Martínez, though, worries about the cost of the short-term credit for Spain. To what extent the results of the latest audits on the banking sector have improved confidence in the Spanish banks? Confidence…