The Government emphasizes that remains three points below the national average after growing 27% less than other regions
SANTANDER / SANTILLANA 12 Sep. (EUROPA PRESS ) –
Cantabria’s public debt amounted to 2.356 million euros in the second quarter, 11.55% more than the same period last year, when it was 2.112 million, according to the Bank of Spain.
Regarding the first quarter of 2014, in which Cantabria public debt stood at 2.288 million, the increase is 2.97%. Thus, the public debt of the autonomous community is again the highest in the time series, which dates from 2000.
In terms of Gross Domestic Product (GDP), public debt Cantabria represents 19%, two points higher than the same period in 2013 and a half point higher than in the first quarter, though it remains three points below the national average, which stands at 22.3%.
This difference three points over the national average is just one of the data highlights the regional government said in a press release in which contrasts the 11.5% increase of public debt in Cantabria last year with 15.75% of all the regions, “which means that the Cantabrian debt grew 27% less than in other communities.”
The Executive Ignacio Diego stresses that Cantabria in the second quarter was the fourth community in Spain increased its borrowing less, and remains “one of the regions that have less debt in the last two years.”
FLA
It adds that the 68 million euros of net debt in the second quarter correspond largely with the accession of Cantabria Autonomous Liquidity Fund (FLA), which “has allowed the region lower the average supplier payment period of more than 140 days on average in 2011 to 54 days (dated July 2014), which represents over 60% “decline.
The Government emphasizes that “liquidity facilities implemented by the State (the FLA itself and the provider payment mechanism to pay health debt) have generated savings in excess of 70 million euros interests.”
In this regard, the Cantabrian Executive notes that “the prudent management of public resources allows us endeudemos only in that 1% of GDP that allows us the deficit target for 2014, with the autonomous region that has fewer resources to borrow, well below the national average. ” This implies, according to the regional government, “savings in interest for citizens, which is the most unproductive expenditure of those has to face an Administration.”
In the same vein the president has spoken of Cantabria Ignacio Diego, in statements made to the media before the meeting of the Board of Altamira in Santillana del Mar.
Diego said that “Cantabria can not go into debt much ever, now that controlled by a law established by the Government of Mariano Rajoy, not as in other times when Cantabria debt shot up ends that compromise the future of the next generations of Cantabrians. “
” The debt now growing in terms of what is allowed to grow to the deficit, and Cantabria is one of the autonomous communities in Spain highlighted precisely the containment of the deficit.’s why our debt grows very little and that’s an exercise in respect to the capacity other future generations who will have resources when needed, which this government can not tell from previous governments that left the situation we inherited, “said Diego.
DEBT COMMUNITIES
The debt rose in the second quarter to eleven autonomous communities and Catalonia, Valencia, Madrid and Andalusia still concentrate most of the borrowings of the regional governments, with 64.9% of the total. Thus, the debt of Catalonia reached 61.863 million euros, followed by Valencia with 34.782 million euros; Andalusia, with 26,548,000, and Madrid, with 25,018,000.
Here are Castilla-La Mancha (12,341,000), Galicia (9911000), Basque Country (9524000), Castilla-Leon (9,393 million), Balearic Islands (7.586 million), Murcia (6.367 million) and Aragon (6.131 million). Canaries close the table (5,462 million), Asturias (3402000), Navarra (3366000), Extremadura (2904000), Cantabria (2.356 million) and La Rioja (1.306 million).
As a percentage of GDP, Valencia, whose debt accounts for 35.7% of GDP, Castilla-La Mancha (34.2%), Catalonia (32.1%) and Balearic Islands (29.1%) communities where its debt is higher relative to their wealth. By contrast, Canarias (13.5%), Madrid (13.6%) and Basque Country (15.2%) are the regions where its debt weighs less on GDP.
NEW RECORD IN SPAIN
In Spain, the debt of the whole general government reached a new record in the second quarter by adding 1,012,643 million, representing 98.9 % of GDP and an increase of 1.6% compared to the previous quarter, according to data from the Bank of Spain.
In this way, public debt begins the year with a strong rebound and goes approaching the target for the whole year, which stood at 99.5% of GDP. Since 2008, coinciding with the start of the crisis, Spain’s debt has been steadily growing year after year and has since more than doubled, going from 436.984 million euros (40% of GDP) over a billion euros this quarter (98.9% of GDP).
In particular, government debt stood at 885.232 million euros, also new record, which now accounts for 86.4 % of GDP and a 2.2% increase over the first quarter, while the indebtedness of the regions rose to 228.234 million euros, 1.4% more than in January-March this year.
Local corporations, meanwhile, remained broadly stable in the second quarter, with a debt of 41.994 million euros, 4.1% of GDP, while Social Security was left with a debt of 17,203 million, about the same amount a quarter ago (17.188 million).
Among the local authorities, Madrid is the most indebted municipality in the second quarter, with a ‘red’ of 6.923 million of euros, 2.2% less than in the previous quarter. Barcelona, meanwhile, has a debt of 1,011 million euros, in this case 6.9% lower than the previous three months.
Methodological CHANGE
This quarter, the debt figures are affected by methodological changes, since they have first applied the criteria of SEC 2010, new European System of Accounts in force since September 1. The new methodology, with which I’ve updated all the time series, the figure has risen to 6,000 million debt.
also affects the debt / GDP ratio and increases by half a point, although the figure is provisional and will be recalculated when the new methodology is also applied to the National Accounts figures later this month (September 25). Sources Bank of Spain explained that the debt will drop in proportion to GDP to rise with the new methodology. The INE said long ago that the change of the national wealth based raise between 2.7% and 4.5%.
In this regard, the financial watchdog warns that the figure of 98.9 % has a “marked provisional” and should be considered only as a sign of the evolution of the debt, but not on their level. “The debt ratio will decrease appreciably released today,” he noted.
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