Catalonia asks 8,500 million euros to the FLA after the approval of the Quita of twenty-two% by the Government | News from Catalonia | EUROtoday

Catalonia can even host this 12 months once more to the Autonomous Liquidity Fund (Fla) launched in 2014 by the central authorities and on which the Generalitat will obtain 22% take away from its present debt if the final settlement taken by the Council of Fiscal and Financial Policy (CPFF) will obtain. The spokeswoman and Minister of Territory of the Generalitat, Sílvia Paneque, has reported on the press convention on Tuesday of the official utility of 8.5 billion euros to the Ministry of Finance. The condonation of the agreed debt akin to the Catalan Executive though the settlement covers all CC AA, equals about 17,000 million euros.

“It is an adhesion that is done annually, it is an ordinary procedure,” mentioned Paneque and has disnimulated the request of the debt for the method of processing in course of within the central authorities. According to the presentation to traders made by the Department of Economics, the estimate of the Generalitat was to obtain 8,481 million euros of the FLA, which has been uninterruptedly resorted to because it was launched by the then authorities of Mariano Rajoy, as a method that the CCAA may very well be financed within the midst of the financial disaster.

With the cash, in keeping with that doc, the Generalitat hopes to scale back the deficit and is directed inside the approved deficit of 0.1% of GDP. For this, 308 million euros could be devoted. Most, about 8,000 million, will meet pending maturities in bonds, lengthy -term loans and different liquidity mechanisms. That is, the cash requested by the Department of Economy corresponds largely to refinancing from earlier money owed of the fund itself. “The increase in debt is very low,” they insist from the Department of Economics.

Two weeks in the past, the Government proposed inside the framework of the CPFF condonar 83,000 million to the CC AA, with customized formulation for every territory relying on the origin of its debt, taking into consideration inhabitants variables. That take away was derived from the settlement for the investiture of Pedro Sánchez, signed between the PSOE and Esquerra Republicana. The Generalitat obtained a Quita akin to 22% of the debt contracted with the state by way of Fla, which is equal to greater than double what’s now requested. The Catalan authorities can even save with that settlement the cash derived from the pursuits of that debt (about 1.3 billion euros).

On October 31, the Generalitat Debt Rating remained a stumbling block to entry to be financed within the markets. Fitch gave him a BBB (secure within the final experiences), whereas Drbs and Moody’s had a constructive evolution. They have been, respectively, in BBB Low and BA1. The Ministry of Finance estimates that solely till the tip of the 12 months will be unable to hold out the mandatory legislative reforms to have the ability to execute the agreed take away.