Bloomberg News

Catalonia May Follow Valencia in Bailout Request, El Pais Says

July 22, 2012

The regional government of Catalonia may follow Valencia to ask for financial aid from the central government, El Pais reported, citing Catalan delegate in Parliament Josep Rull.

The Catalan regional government, led by Artur Mas, is trying to negotiate a 500 million euro ($608 million) bridge loan with undisclosed financial entities, El Pais said. The regional government has warned publicly funded hospitals and schools that if they fail to secure the loan they will not receive payment this month given that they only have enough cash to pay public sector employee wages, debt maturities and some supplier´s bills, El Pais added.

A spokeswoman for the regional government of Catalonia wasn´t immediately available for comment.

Catalonia, Castilla-La-Mancha, Murcia, the Canary Islands, the Balearic Islands are among six Spanish regions that have admitted they may ask for aid from the central government after Valencia sought a bailout on Friday, El Pais reported.

Andalusia will also need to tap the fund, even though Diego Valderas, vice president of the regional government, yesterday ruled out such a measure, El Pais said.

To contact the reporter on this story: Sharon Smyth in Madrid at ssmyth2@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net


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