Bank of Spain Governor Pablo Hernández de Cos warned this Monday: eliminates regional debt accepted by him PSOE and ERC This is just a patch that has appeared once again. “old problem” of the system financing autonomous Spanish. “We have a financing system that we never consider completely closed. financial imbalances The situation of the autonomous communities, the deficit and the public debt cease to be an indicator. good or bad management by regions, but an indication insufficiency “In terms of resources,” he said.
Therefore, the senior official said that the gaps in the communities’ public accounts inadequate resourcing The provision of the financing system means that when they have problems, this insufficient financing becomes the excuse of financing. government bailoutlike years ago regional financing fund The reduction that the Rajoy Government (FLA) or the Sánchez Administration has committed to promoting.
“Until we completely close the regional financing system with mechanisms that create regional financing.” incentives for a cautious behavior Clearly, for communities risk Hernández de Cos warned at the annual meeting of the Financial Markets Association. In this sense, the Bank of Spain advocates new regional financing that provides: Adequate resources have autonomy and are also article very restrictive recovery communities by the state more responsible from your financial situation.
Duties to the Government
The governor also ensures that his institution “does not find it necessary” to expand below the minimum annual income threshold mortgaged can benefit Code of Good Practice To reassure customers about payment issues that the government has committed to resolve shortly after the current situation 29,400 euros (3.5 times IMPREM) to “average income” (37,800 euros). He repeated that it was the same way. “definitely early” European Central Bank (ECBstart talking about lower rates once again showing reference interest, conflict with banking ‘tax’ (He said the “desirable” thing would be for the money to stay in the banks, thus strengthening their balance sheets).
Hernández de Cos also sees mitigation. financial imbalances This must be the new Government’s “absolute priority”. He also thinks it is important to address an issue. “ambitious” reform program This allows Spain to once again move closer to the European Union average in terms of income per capita; This is something that has not been possible for years due to the country’s low productivity. He once again advocated two measures that should be encouraged: “some consensus” by different political forces