CyL closes third quarter with 11,691 million of debt, 20.4% of GDP, after covering 94% of its needs

 As reported to Europa Press sources of the Board this ratio is 4.3 points lower than the average of the autonomies and consolidates the Community as the eighth “most healthy” in the country in relative terms. The Autonomous Administration reaches the month of September with 94 percent of its financing needs for 2017 already covered.

The volume of the Castilian and Leonese liabilities increased between July and September by 313 million euros with respect to the period between April and June, mainly due to the fact that the Board has intensified the formalization of the indebtedness foreseen for this year.

Specifically, in this third quarter, the first loan of 162.5 million was subscribed under the Financial Facility Fund (FFF). It is worth remembering that on June 22nd, and once the mandatory compliance of three fiscal rules in 2016 (deficit, debt and spending rule) was accredited, the Community agreed to its adhesion to this instrument authorized by the Government to cover the needs of financing of the second semester, estimated at 612.19 million euros. 

These operations have been completed with the three debt issues and nine bilateral loans that have been signed between January and September, for an overall amount of 825.9 million euros. The conclusion is that in the absence of three months to conclude the exercise, Castilla y León had already closed 94 percent of the annual debt recorded in its budgets, although at the current date of December 15 that percentage is already one hundred percent.

According to the regional administration, despite the fact that the Community has increased its living debt by 2.75 percent in quarter-on-quarter comparison, it continues to be the eighth “most healthy” autonomy, according to the supervisor’s statistics. The weight of its liabilities in relation to the GDP is equivalent to 20.4 percent, a percentage that far exceeds Valencia, Castilla-La Mancha, Catalonia, Balearic Islands, Murcia, Extremadura, Cantabria, Andalusia, and Aragon. Likewise, the Castilian and Leonese ratio is 4.3 points lower than the average of the communities, so it maintains a good relative position in the whole country.

THE LIABILITY REPRESENTS 4.1% OF THE TOTAL OF THE AUTONOMIES

The 11,691 million euros that make up the liability of Castilla y León according to the Bank of Spain account for 4.1 percent of the total accumulated autonomies in the same reference period, according to the European System of Accounts (SEC).

This amount includes the credits formalized under the FFF, amounting to 2,215.8 million euros; the operations of ‘factoring’ without recourse, that is to say, the session to financial institutions of some commercial credits before the public administrations, which suppose 340.6 million; the 294.6 million euros of the debt associated with public-private collaboration projects, and the repayable loans subscribed by the Board to support the companies, which add 287.9 million.

95.3 percent of the total indebtedness of Castilla y León is in the hands of the Administration; 3.9 percent corresponds to universities and public entities under private law, and the remaining 0.8 percent falls to public companies.

IMAGE IN THE MARKETS

IMAGE IN THE MARKETS

 

If the debt of the Community is analyzed according to its structure, it is observed that 30.3 percent has been formalized through issues, compared to 69.7 percent through loans PaydayChampion.com, which shows, on the one hand, credibility and the good image of Castile and Leon in the markets and, on the other, the commitment of the Board to continue expanding and diversifying the investment base of the portfolio.

With regard to public companies that carry out market activities, their indebtedness has fallen by six million euros in the last quarter, so their liabilities stood at 170 million euros in September, 0.3 percent of GDP, one-tenth lower than the ratio of the set of communities. These credits are excluded from the European System of Accounts.

Finally, if both magnitudes are added, the debt included in the SEC (11,691 million) and the one that does not (170 million), the resulting amount rises to 11,861 million. This figure is equivalent to 20.7 percent of GDP and is the eighth lowest among the autonomies. The Castilian and Leonese ratio is also 4.4 points lower than the average since the global indebtedness of the public sector of the communities represents 25.1 percent of the size of their economies and amounts to 288.456 million.

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