Finance

Home page

Finance

Catalonia asks Madrid for emergency aid

29 August 2012 09:21 (UTC +04:00)

Baku - APA-Economics. The regional government in Catalonia has asked Spain’s central government for a loan of more than $6 billion dollars.
The Spanish government announced in July it would set up a scheme to help its 17 autonomous regions pay their debts.

However, the fund is not up and running yet, and already Valencia, Murcia and now Catalonia have said they will need to draw on it.
Spain’s economy has contracted further in the second quarter, and speculation is persisting that the country will have to request a full financial rescue, after already seeking a bailout for its banks from other European nations.

Meanwhile, debt inspectors are in Portugal checking whether it is meeting the terms of its international bailout.

The visit by the troika - the IMF, ECB and European Commission - follows figures suggesting Portugal will not meet its deficit target unless it further tightens its budget.