Hispanobos for everyone in June. In Spain, a local version of Eurobonds will be tested. Indeed, the Government of Madrid will approve a measure that will guarantee the bonds of the regions from the Treasury. This was indicated by the spokesman for the Ministry of Economy, specifying that the measure will be approved on Friday. Local authorities already issue Bonos but in recent months the interest requested to finance their debt has reached very high values (around 7% for some autonomous communities). The hispanobonos, having the guarantee of Madrid, they should help reduce the difficulties that local authorities are encountering in obtaining financing on the market.
In exchange, however, the Autonomous Communities will be forced to implement austerity measures to restore public finances. Catalonia and Valencia are the Regions on which the pressure of the financial markets is most pressing and which have the highest debt values. The province of Barcelona has to face deadlines of 13,4 billion euros this year and has declared that it cannot do it without the help of the government. Valencia, the Region that creates the greatest distrust among investors, last week was forced to refinance its short-term debt by paying 7% interest (when the Treasury paid 6. 1,5%) and has to face a further 1,5 billion of bonds maturing in May.
