Spanish Regional Bailout Fund Runs Out Of Money Just As Regional Elections Begin

Tyler Durden's picture

Today is an important day for Spain, where two benchmark regions - the separatist inclined Basque region and Rajoy's own Galicia - are holding the first of many elections for regional government in what will be seen as a harbinger of popular (lack of) support for Mariano Rajoy's policies (and further explanation why any incremental steps taken by the increasingly unpopular PM to hand over Spanish sovereignty to foreign could well be his last).

AP explains:

"Two northern regions in Spain are holding elections for their legislatures Sunday in the first popular test of the central government's stringent austerity policies since it came to power late last year.


A deepening financial crisis and how best to address the nation's separatist tensions are the main issues facing political leaders and voters in the turbulent Basque region and in northwestern Galicia. With 2.7 million voters, Galicia is a traditional stronghold of the ruling Popular Party and the homeland of Prime Minister Mariano Rajoy, so an upset there would rock the PP regionally and nationally.


Spain has separatist groups in Galicia, the Basque region and prosperous and influential Catalonia. About 1.8 million Basque voters are likely to oust Socialist leader Patxi Lopez — who ruled thanks to an agreement with the PP — from the 75-seat legislature in the industrious and well-off northern region that borders France. The Basque region has been wracked by decades of separatist violence.


"We hope this election succeeds in bringing us peace, so we can reach an understanding between ourselves and let us know how to make concessions," said Sister Teresa Ormazabal, a nun in the Basque region's largest city, Bilbao. Lopez was jostled by demonstrators carrying placards backing violent Basque separatist group ETA as he voted early Sunday."

None of this is news. What may however surprise many is that as of Friday, Spain's "temporary" €18 billion regional bailout fund is now practically empty: a discovery which will hardly make any additional regions, who have so far dragged their feet in demanding a national bailout, happy with the Prime Minister's handling of Spain's creeping bankruptcy.


  • Total bailout fund size: €18 billion

Bailouts already requested:

  • Cataluña: €5.023 billion
  • Andalucía: €4.906 billion
  • C. Valenciana: €4.500 billion
  • C. La Mancha: €0.848 billion
  • Canarias: €0.757 billion
  • Murcia: €0.528 billion
  • Baleares: €0.355 billion
  • Asturias: €0.261.7 billion

Subtotal: €17.179

Bailout funding left: €0.821 billion. Oops.Those who waited in hopes things will get better: tough luck.

And as we observed last week, here is why the regional "bailout issue" is only going to get much worse.

To summarize: Spanish regions: broke; Spanish banks: broke: Spain itself: on the verge of being bailed out by Europe. => Time to buy more SPGBs.

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Popo's picture

Oh dear, Spain needs money.   Bend over Germans.  Furher Merkel wants to take you all from behind again.   She needs to save the banking elite by giving more of your future away to the Spaniards.   

Eireann go Brach's picture

But we have the Worlds best Football team, so who cares!

redpill's picture

I'll graciously take the remaining 821 million Euros off their hands.  I need a bailout.

Gully Foyle's picture

How will this affect Benidorm?

lasvegaspersona's picture


thank you

I learned something already this morning!

Always wondered how those worked. Much simpler than I imagined.

ngrySpaniard's picture

Why don't you people stop saying that german tax money is given to us spaniards, when actually the german tax money is given to spanish banks that in turn owe it to the german, french and netherland PRIVATE banks?

Kayman's picture


Being new to Fight Club, you haven't been privy to ZH history.  Most, not all, believe that it is all about saving the criminal bankers and little to do with saving the citizens of any given country.

john39's picture

Not only saving the criminal bankers, but also destroying the financial security of the average person in each control, leaving them desperate and subject to further manipulation and control of the fascists behind this. Why? Quite simple, they sold out to evil.

ziggy59's picture

I think some decimals are missing.. Just sayn'

urbanelf's picture

Europe still exists?

Water Is Wet's picture

Old joke:  You're American before you go into the bathroom, and American when you come out.  What are you while you're in the bathroom?  European!

Substitute your own nationality, obviously.

zilverreiger's picture

I thought catalonia was a rich area, but they got 40B debt... highest of all provinces

Conman's picture

An the US is a rich nation, look at our debt.

Kayman's picture

"An the US is a rich nation, look at our debt"

And the U.S. was a rich nation.

Conman's picture

Spaniards must wait until german elections are over. Then they can give up their sovereignty and whore them selves out for a bailout. Mind you - never intending to stick to the terms of the bailout a la greece or any of the PIIGS.

Dareconomics's picture

When the Oliver Wyman completed its stress tests of the Spanish banking system a few weeks ago, it was suspicious that the pre-test estimate of €60bn to recapitalize only a shade higher than the €59.3bn result. We are now told that the regional bailout fund has assisted all of Spain's regions with €821mm to spare.

From ZeroHedge:

  • Cataluña: €5.023 billion
  • Andalucía: €4.906 billion
  • C. Valenciana: €4.500 billion
  • C. La Mancha: €848 billion
  • Canarias: €757 billion
  • Murcia: €528 billion
  • Baleares: €355 billion
  • Asturias: €261.7 billion

Now, the Spanish finance ministry must employ forecasting geniuses. Then again, their budget deficit projections have been way off, so perhaps something else accounts for these remarkably prescient forecasts while under extreme economic and fiscal duress.

Jean-Claude Juncker says, "When it gets serious, you have to lie." It must be serious in Spain:

hampsterwheel's picture

I thought it was if Spain were to be bailout it would mark the end of the EU - (that's what everyone was saying 18 months ago) now here we are and its getting bailed out - Greece is still in - no one has left,no debt written down, no banks have been forced to take any losses whatsoever - the IMF was able to get two GS employees heads of State gigs - I'd say all those pundits were wrong - this is very bullish -


bank guy in Brussels's picture

And years after the various national debt defaults ...

Vulture fund in Cayman Islands, NML Capital Ltd, owning old defaulted Argentine bonds, have convinced judges in Ghana to seize a beautiful sailing ship from Argentina when it was docked there in Africa

Current news story supporting ZH's past articles re defaulted bond international litigation

« The Ghanaian judge acted on a claim by NML Capital Limited, which is based in the Cayman Islands.

Its owner, billionaire investor Paul Singer, leads a group demanding payment in full, plus interest, for dollar-based Argentine bonds bought at fire sale prices after the country's economy collapsed a decade ago, forcing a sharp devaluation of its currency. »

Nice looking ship

Non Passaran's picture

This is old news and was on ZH before. Besides it's off topic.

PontifexMaximus's picture

no problem, spain will survive, a few demonstrations more, but do not wory, their standard of living will not suffer. probably 1 cerveza less, but at the end of the day, business as usual. spain is important for the reelction of merkel, she will be the elder stateswoman and will win. didn't you get it, that draghi has already solved all the problems in europe, the local national governments do not count at all. and again, the us need a weaker USD and that will attract the EUR as a investment currency for the big gov. funds for diversification. watch target funds, they have peaked and slichtly coming back, meaning that national european debt has been outside funds. and again, we need spain just for the mass media to write.

kito's picture

Troika milk will flow soon enough

Atomizer's picture

Spain, showed signs of real convergence


Santa Klaas Knot chimes in 

Edit: For the weak minded fucksticks who are scared to dl a PDF from the Central Bankers BIS site. Here's my masked link

LongSoupLine's picture

No one could have predicted this!

djsmps's picture

No one expects the Spanish insolvency.

LeisureSmith's picture

Er, i might be confused, but shoulden't the numbers be like this:


  • Cataluña: €5.023 billion
  • Andalucía: €4.906 billion
  • C. Valenciana: €4.500 billion
  • C. La Mancha: €0.848 billion
  • Canarias: €0.757 billion
  • Murcia: €0.528 billion
  • Baleares: €0.355 billion
  • Asturias: €0.2617 billion

or this:


  • Cataluña: €5.023 billion
  • Andalucía: €4.906 billion
  • C. Valenciana: €4.500 billion
  • C. La Mancha: €848 million
  • Canarias: €757 million
  • Murcia: €528 million
  • Baleares: €355 million
  • Asturias: €261.7 million



DAMN! to slow..

orangegeek's picture

Euro and American markets are coupled tightly.


The drop on Friday is likely the start of the big move down.


It is long overdue.  Q2 was a load of lower revenue on higher earnings.  When did lower revenue become bullish. 


When this is all over, say good bye to the entitlements and pensions.  Both of these will be a drop in the bucket as compared to what is offered today.

virgilcaine's picture

Who need to ever work again?.. Bailouts 4 ever.

q99x2's picture

And automation and robotics are so much more efficient.

Yep time to jog, play music, meditate and study the young girls in Sothern Californian colleges.

Oh no I won't come down no more. - MH

Atomizer's picture

From January of 2011

Hitler finds out that Spain will need bailing out.


Wash, rinse and repeat until there is no more money to steal. Declare a financial collapse, riots & shootings will ensue. Population reduction will occur and pension obligations will disappear. We then begin to rebuild on a cheap labour wage scale.


Central Planners, tricks are for kids

THE DORK OF CORK's picture

Again when Cuba was cut off from Soviet capital (energy) flows it did not stop dead for lack of token money.

How absurd !!!!!

Another example of whats really happening in Spain.

A energy crisis yet these units must make a profit expressed in Euros which is a flawed unit of account in Spain and the other PIigs , which means more leakages of domestic demand…… via now hard $ exports / oil importsía_de_Vélez-Málaga

“Suspension of service since June 3, 2012 – the tram has stopped working due to lack of budget for maintenance”

which means they cannot find the tokens for LABOUR – not energy , they are force feeding us oil and the medicine is not good for us , its good for them


They are burning every village for a purpose….

It is not mindless.

They (the city) is destroying the Spanish capital investments so that they can become relatively richer.

Net wealth or the commons is not a concept they choose to understand.

Efforts to preserve metaphysical wealth claims destroys real physical wealth (Labour knowledge , physical capital, the complex linkages that connect towns with their hinterlands etc etc.

We have seen Titanic malinvestment during the post 1987 Euro credit hyperinflation phase and now titanic malinvestment during the  money deflation phase of this Euro nightmare..

The EIB is investing more money in Spain then any other country this year (6 Billion already) - mainly in rail , tram and solar tower shit - but local authorties do not have the money tokens to run existing systems.

The Euro is not a currency - its a yield vehicle  , it can only grow outwards via waste production , it refuses to give its vassals the tokens to use the waste it itself has created.

Its really a very very sick experiment.

warchopper's picture

COLLAPSE! Just get it over with.

timbo_em's picture

It is important to notice that the bailout fund itself as well as the money requested by the regions only concerns 2012. It's going to get much worse in 2013 and even worser as the central government gets deeper into trouble by the minute. Madrid and maybe two or three other regions will be able to go without assistance but all other regions are more or less broke.

Reptil's picture

Quite the "colored" report from the supposedly "impartial press" this AP article. The Basque region wasn't wrecked by "decades of violence", the political process was numbed by it, in a powerstruggle between regional and national forces. Of course there were bloody attacks, against exploitation of the Basque region, but also against political opposition. The fishing industry of the north was wrecked because the PP president Aznar ordered a sinking tanker loaded with crude towards their coast (rich fishing grounds) against the advise of the dutch salvage company who were already on the case. The ETA, which has a terrorist/rebel faction which is violent, also has a non-violent political arm. They'll do well since the central government has chosen the side of the banks. Is that good for "Spain"? No of course not, it's now in danger of fragmenting, after cease-fire ended the ETA violence some years ago. Great job Van Rompuy, the dismanteling of the nationstate is in full swing.

THE DORK OF CORK's picture


Construction of high-speed rail line between Vitoria, Bilbao and San Sebastián in priority TEN-T corridor 3 connecting Iberian Peninsula to France


EUR 1,000,000,000



  • SpainEUR 1,000,000,000

Signature date(s)

  • 27/07/2012 : EUR  250,000,000
  • 27/09/2012 : EUR  250,000,000
  • 22/06/2012 : EUR  500,000,000
  • and yet no money to run the existing rail systems............................whats wrong with this picture ?
  • Spain needs a Fiat King.






THE DORK OF CORK's picture


Construction of new 24km section of AP46 motorway, between Malaga and Las Pedrizas in Andalusia


EUR 130,125,000



  • SpainEUR 130,125,000

Signature date(s)

  • 27/10/2011 : EUR  40,750,000
  • 14/06/2012 : EUR  39,375,000
  • 29/09/2011 : EUR  50,000,000

So they are building a new motorway in Malaga when car sales are crashing........................meanwhile they don't have a couple of million to run the existing tram service in Malaga.

Something is deeply wrong in Spain and in Europe.

It builds stuff all over the gaff , then says we don't have enough tokens to sevice the existing built envoirment and then moves on to another project..............

Don Diego's picture

you wrongly assume that infrastructure projects in Spain are undertaken in the taxpayers' interests. The fact is that the larger projects leave fatter bribes to the politicians that select them.

THE DORK OF CORK's picture


Why do you think that I assume this ?

I am not a fan of many of these projects...........but its a question of what can be saved after the event.

Local public transport declines are a function of a lack of money supply withen the system although Malaga is probally suffering a external tourist shock also............anyway if you want to save real resourses the private car gets priced out of existence.

Remember at any given time a economy can only produce a certain amount of wealth - once you realise this the question is not about the availability of symbolic money but a question of real resourse allocation.

Rail & tram is typically more labour intensive rather then energy intensive.........the unemployment problem in Spain and Ireland is the result of a lack of domestic fiat currency.

stateside's picture

Astur Gold (AST in Canada) is trying to develop a 2 million ounce gold deposit in Asturias but the left wing government won't give them a  permit even though over 70% of the local community want the mine to go forward.  This will create 100's of new jobs and millions of much needed tax revenue yet the environmentalists and the left wing government say NO.  Much easier to beg for free bailout funds.  The Obama administration would be oh so proud.



q99x2's picture

I just checked out the Spanish stock market for this year. Holy crap its on a tear like no tomorrow. Their economy must be doing fantastic.

Forgot that is what they used to indicate in a general way.

Stock markets are now a way to funnel money to the rich from the Germans and other sheeple. 

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