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Cantabria pay their debts to Greek ransom

The PRC-PSOE Executive in July hired two operations debt 10 years for which a 5% reservation in respect of interest payments

According to documents submitted by the Government of Cantabria regional parliament, the executive Miguel Ángel Revilla signed during the second half of last 2010, two loan transactions for total value of 135,700,000 euros. In the corresponding file multi initiated for repayment of that amount to financial institutions, shows a section exclusively for the payment of interest. Accounts for 5% of the principal. Comparatively, the International Rescue Greece was agreed with an interest rate of 5.2%.

Despite protests from the Ministry of Economy and its chief executive, Ángel Agudo, about the healthy nature of the Cantabrian purse and reputation regional debt, citizens of the community, via the budget, start credits to pay expensive call their rulers.

Specifically, there are two transactions signed with Santander (100 million euros) and Caja Madrid (37.5). Both have a grace period of six years, Cantabria begin to return in 2016. Due in 2020. The low debt is a factor for liquidity and the Executive price has gone from duty Revilla 470 million in September nearly 900 at the end of the year. 66.2%, when the English average was at 27.3%. Not to mention public enterprises. Money

more expensive

comparative economics in this case does not support optimism. The usual interest indexed to the 10-year German bond is around 3%. If Greece pays ransom to 5%, Ireland will not below 6%, a figure that pay the most indebted English Autonomous Communities.

Therefore, despite the usual sense of the manifestations of acute ("Cantabria is in the best position of Spain in regard to the situation of public accounts), the financial institutions appear to distrust and Cantabria sell their money considering their risk premium in the upper middle strip of the classification of the English Autonomous Communities.

In the case of transactions with Santander and Caja Madrid, Cantabria must pay 6.8 million a year in interest. At the end of the year just closed, the counselor Acute and director of Treasury, Budget and Financial Policy, Manuel Díaz, following a review of Cantabria credit rating by Fitch, felt the opposite: "The responsibility and fiscal prudence of the Executive allows the citizens of Cantabria save 34.5 million euros in interest year, compared to those who would face if the debt was in the Cantabrian English average. "

confidence in the management and the possibilities of returning the borrowed are other pillars that sustain the interest rates and credit ratings to support the government. While Cantabria fluctuates in position within the top five of autonomy less debt by percentage of GDP, one of the other legs seems to fail, for credits paid by the Cantabrian not go in line with debt level.