Spanish regional governments might get their long-awaited hispanobonds in order to fix their liquidity problems. This mechanism will inject around 30 billion euros into public accounts .
For some of the regions, the mechanism is absolutely necessary. Catalonia, Valencia, Andalusia and Madrid will use it to capitalize 87% of the 8.352 billion euros in debt payments that are expected for this year.
To pump funds into the public treasuries also eases pressures on the regional governments ans Social Security system in their efforts to solve liquidity problems.
Yes, there will be hispanobonds, but they sure aren?t free. Now regional governments will need to apply even more cutbacks win order to meet their deficit objectives.
