Hacienda responds to Mas that Catalunya is financially “unviable” without Spain because it is a ‘junk bond’
The Ministry of Finance has come to the step of the declarations of the president of the Generalitat of Catalonia , Artur Mas, on the possibility that this Community does not pay the contracted debt , and has indicated that Catalonia without Spain is financially “unviable” because its qualification credit is ‘junk bond’.
The department that directs Cristóbal Montoro has posted on its website a statement in which it tries to dismantle the criticisms leveled by Artur Mas, and in which he warns that if he announces that he will not pay the debt, nobody will lend him money .
“If it announces that it will not pay the debt, who will finance it ?, at what price? If it had not been for the loans granted by the State through the different funds put in place, the Generalitat would not have been able to attend to the maturity of debt that has contracted from previous years, “says Finance.
The ministry added that Catalonia “could not have financed its public deficit, nor could it have supported the financing of public services, nor could it have guaranteed the payment of invoices to many small and medium-sized companies, suppliers of the Catalan Administration”.
The Government reminds the Generalitat that it is not the Spanish State that harms it financially, but that it is thanks to it that it has access to the markets.
“Statements of this kind, in which the head of a Public Administration states that he would not have problems in breaching the obligations contracted, do not help to recover credibility but, on the contrary, seriously affect the prestige of the institutions,” stresses the release.
“NOBODY CAN FOUND A STATE REPUDIATING HIS DEBT”
According to the Ministry of Finance, it would also be a breach of current legislation that does not suit the Catalans, who would be living “in a country that is financially unviable and politically unstable”, with serious consequences for their economy, for their companies and for the sustainability of their social policies, from the payment of pensions to the maintenance of fundamental public services.
“Nobody who founds a state can start its sovereignty process by repudiating the debt,” says Hacienda.
The department headed by Montoro provides data on how Catalonia has managed to finance itself, “despite having closed the doors of the markets”, and the low interest rates it pays.
Between 2012 and 2015, the central government has provided liquidity to Catalonia amounting to almost 50,000 million euros (49,927.9 million).
At present, the debt that Catalonia has contracted with the State is 37,487 million euros, which is 18.4% of its GDP and accounts for 56.1% of its total debt, which amounts to 66,813 million, the 32.8% of its GDP.
The statement stresses that the State “financially supports Catalonia since 2012”, in the same way that it has done with other administrations with liquidity problems to which the markets closed their doors or tried to charge very high interest rates, even unacceptable, for granting them loans.
“Catalonia has managed to finance itself, and the low interest rates that it pays, and that as of this year are 0%, imply important savings in the interest bill.
Specifically, this year the savings will be 1,597.91 million euros, and the forecast for next year is to save another 1,368.71 million more, “he reiterates.
Finally, the Treasury indicates that it is “evident” that Catalonia is now financing itself in good conditions because it is part of Spain.
“The mutualization that the Spanish Treasury has carried out of the debt of the territorial administrations is its bridge with the markets”, and the Spanish State is its bridge with the single currency, it has confirmed.
“If Catalonia left Spain, all those bridges would collapse and it would run out of the financing it needs,” he warns.