Spain Unpaid Bills May Haunt Rajoy as States Crave Liquidity
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Spanish Prime Minister-elect Mariano Rajoy is set to inherit billions of euros of unpaid bills along with the euro region’s third-largest budget deficit.
Spain’s 8,000 municipalities and 17 semi-autonomous regions are suffering from a cash squeeze as many are shut out of markets, prompting them to delay paying suppliers. Regions’ debt rose 1.5 percent to 135 billion euros ($176 billion) in the third quarter the Bank of Spain said today. Catalonia had the highest debt, at 39.3 billion euros.