Monday, July 30, 2012

Spain Treasury to Issue Debt for Regions

The Spanish Treasury will issue as of 2013 enough debt to include financing needs for the nation's regions who require financial support, Inigo Fernandez de Mesa, secretary general for Treasury, told Expansion in an interview published in its Monday Internet edition.

"When the Treasury will calculate its liquidity estimates for 2013 it will also include those of the regions willing to adhere to this mechanism", Fernandez de Mesa told the newspaper.

The money raised will be lent to regional governments who meet "special requirements," he added.

Last week, the government said it will lend up to 18 billion euros to Spanish regions until the end of the year, EUR8 billion of which will come from a loan with financial firms. Another EUR6 billion will come from a credit from the national lottery and the Treasury will take care of the remaining EUR4 billion, he added.

Fernandez de Mesa added he's confident that Spain will meet its financing needs without a European rescue package as the Treasury has already covered 68% of the country's financing needs for this year.

He also told Expansion that the 7% yield the 10-year Spanish bonds have recently reached will soon experience a correction as it doesn't reflect the country's economic fundamentals.

Write to Enza Tedesco at enza.tedesco@dowjones.com

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Copyright ? 2012 Dow Jones Newswires

Source: http://feeds.foxbusiness.com/~r/foxbusiness/latest/~3/ak4PtKRBRoo/

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