Debt Forgiveness to the Autonomous Communities Would Ease Their Burden

Jakob Suwalski and Brian Marly, analysts of the public and sovereign sector of Scope Ratings, talk about the Spanish government’s proposal to alleviate the debt of the autonomous communities by €83 billion, equivalent to 25% of the total regional debt. Brian Marly, of Scope Ratings For them, this cancellation is credit-positive, since it will reduce the debt burden of the communities, but carries a moral risk, which underlines the need for a ref…

“At the end of the IOSPER intervention, the entire astronomical debt we discovered when we took over will be canceled. This represents 45 billion pesos in liabilities that put our social security system at risk,” said Governor Rogelio Frigerio this afternoon. “As a result of the effort, commitment, and transparency with which we work, at the end of the IOSPER intervention, the entire astronomical debt we discovered when we took over will be canc…

The state will assume 83,252 million euros of the debt of the communities. Andalusia and Catalonia are the most benefited regions, accumulating more than 43% of the total.

Consensus of the Jakob Suwalski Market and Brian Marly (Scope Ratings) The proposal of the Government of Spain to alleviate the debt of the autonomous communities by €83 billion, equivalent to 25% of the total regional debt, is positive from the credit point of view, since it will reduce the debt burden of the communities, but carries a moral risk, which underlines the need for a reform of the financing. The proposal will improve the debt metri…