Spain 'Discovers' 28 Billion In Debt

Tyler Durden's picture

Back in late March, we pointed out - much to the chagrin of the LTRO-funded Spanish-sovereign-debt-stuffing banks of the tapas-nation - that, in a similarly misleading manner to Greece's 'leverage' the debt-to-GDP data for Spain was significantly higher than official estimates. Once sovereign guarantees, contingent liabilities and their responsibilities to the EU and the ECB were included things got a whole lot uglier. Now, slowly but surely, as reported by Reuters this evening, some of these bilateral guarantees/loans are coming to light. Instead of the expected EUR8 billion of 'regional refinancing' expected for 2012, it turns out there is EUR36 billion and as Reuters notes "the difference is due to bilateral loans from Spanish banks to the regions worth 28 billion euros that were not made public previously" adding that "It could unnerve further investors concerned by the capacity of Spain to curb its public finances and reform its banking sector." Critically this stunning 'discovery' should be worrisome since the plan, given the regions are virtually blocked from public market financing - due to the high cost of funds, was/is for the sovereign to guarantee (there's that word again) their issuance explicitly. Ironically, as de Guindos and Hollande are chummy borrow-and-spendaholic growth-seekers versus Merkel's safe-and-austere determination, so now the Spanish authorities must lend exuberantly to their regions while at the same time demanding deficit targets are met (or else?) - or as one Reuters' source objects: "You can't tell them on one side that they have to be austere and on the other side give them unlimited liquidity". Irony indeed.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cursive's picture



"You can't tell them on one side that they have to be austere and on the other side give them unlimited liquidity". Irony indeed.

Ah, yes, the irony of Schrodinger.

knukles's picture

And of course, "not previously made public".
What else somebody gonna say when asked where the cat is?
Notihin' in my bag!

Joe The Plumber's picture

Oh what a tangled web we weave
When we first try to deceive

Ahmeexnal's picture

Hala Mierdrid!!!  Hala Mierdrid!! Teneis mierda en la cabeza si no derrocais al asesino de paquidermos!


Harlequin001's picture

Ooops, another 'rounding error'...

redpill's picture

As an aside, just because no one has mentioned it, I appreciate the Quixotic windmills in the title graphic, very apropos Tylers.  Your cleverness is not lost on the 'pill!


The Big Ching-aso's picture



Madrid must be a sister city of Sacramento.  The leaders of both could swap legislatures and no one would notice.

redpill's picture

Don't insult the Spanish so gravely.

Oh regional Indian's picture

oops and uh-oh and gee, look what I found.

Another HOLE.

Need more DOLE.

BobDole. Remember his South Park Bobble Head?

Anyways, it's Spain folks. Spain has been the conduit, via Santander, to shore up South America massively, mostly for developingthe energy sector (see all those Finds off Brazil recently) Eco-tourism and raping and pilaging the rain forest. But this 28 bill is a small pill.

As one or the other (Brazil/Argentina) take a hit on anything, Santander will become the whirl-pool that sucks the life out of the Euro. See where Hundreds of thousands of hectares are owned by the PTB. It's a follow the money game.

Europe has been destroyed by too many factors for it to right itself in any way shape of foorm resembling what it is today. 



UBIGDummy's picture

Fook SPAIN,  Hope they crash and burn.  Ever since they stole from a salvage company with the help of a STUPID JUDGE who does not understand 1000 year salvage laws.  Worst part is they did not even pay the salvage company 2 million dollars it took to find the sunken ship, and recover the silver gems and artifacts.  

Beautiful country but screw them.

lucas991's picture

International treaties generally hold that warships sunk in battle are protected from treasure seekers you dumbass. And if you want to blame somebody blame the U.S District Court.

ChrisFromMorningside's picture

8 billion revised to 36 billion? Kinda like how JPM's 2 billion loss became 3 billion then 5 billion? Kinda like every month the BLS releases headline stats then a few weeks later, woops, looks like we forgot to account for a few hundred thousand layed off people (I guess it can be easy to miss them if they aren't working for the federal government or McDonalds). Now its like hey, surprise buttsecks!, looks like our piece-of-shit dangling-on-the-precipice regional banks are in 3x more debt than we told you about, to the tune of almost 20 billion, woopsie LOLZ.

This shit is such a total joke. The people who are still propping up this blatant charade are bona fide criminals of the most dangerous, sadistic, misanthropic kind.

Harlequin001's picture

but it's for our collective benefit isn't it?

That makes them patriots doesn't it?

Shouldn't we be giving them a pay rise?

The world will be such a better place once these banks are recapitalised, won't it?

Just askin'...

as a gold holder I think they should print some more money. Print, print, print, print, print, aaannd print some more...

Go fuckers, go.

I've got gold... and I don't give a shit... We like printing, I was thinking of becoming a printer myself cos they'll soon be in short supply... expanding market and all that.

Harbanger's picture

I know several languages so I feel the need to correct you.  A la . is 2 words not one.  It means "to the" in Spanish.  Hala sounds like halal, but it really doesn't translate into any language.

Ahmeexnal's picture

"Hala Madrid!" is the battlecry of Real Madrid fans.  "Hala" means "Forward" in scumbag Madrid slang.

Harbanger's picture

You're right .  I'm just learning their scumbag Madrid slang :)

lucas991's picture

Menudo retrasado que estas hecho...

Yen Cross's picture

" When we practice to {FIRST}, deceive"?   Just a test.

boogerbently's picture

Spain, Portugal, Ireland, Italy, France......

is WHY Greece will need to be dealt harshly with.

If they get "easy money", everyone else will want some, regardless of the moral/social/ethical implications.


vast-dom's picture




ACP's picture

Ah, they're just trying to make the QE4 "threshold."

Harlequin001's picture

'"You can't tell them on one side that they have to be austere and on the other side give them unlimited liquidity". Irony indeed.'

and why not all of a sudden when we've been doing just that for years...

HD's picture

Surprise, you're insolvent! Who wants austerity cake with unlimited calories?

Parabolic's picture

Hasta La Vista....bitchez!

Yen Cross's picture

The " Running of The Bears" , Bitchez!

HD's picture

One can only hope...

Yen Cross's picture

I appreciate your comments " HD". Thanks for taking the time to reply.  P.S. ? Where is Slewie/

HD's picture

Not sure. He has a clone running around last I saw...

Yen Cross's picture

I found him ( Slewie). Thanks HD. Have a good Memorial Day Weekend.  BE SAfe

Joe The Plumber's picture


YC said something I finally understood

Hulk's picture

unnerve further investors

Thats it, I am out for good. Anybody invested in sovereigns or munis, at this point, is completly out of their fucking mind...

Yen Cross's picture

What can't go down, must go up "HULK".  Get ready for the squeeze.

   Just Kidding.

Cursive's picture


Seriously, I can't contemplate how obvious the next market decline is and who is going to be on the other side of the trade.  ZH reported earlier today that we have record short EURUSD holdings.  The counterparty risk here is immeasurable.

monopoly's picture

The sad part is we are still far from the end game. And I know most here wish it were over... so we could start over.

ebworthen's picture

O.K., I need a shaving bowl, a horse, and a loyal servant; oh...and Lady Dulcinea.

Yen Cross's picture

 Will that be all Sir?   Beluga/Osetra/ Sevruga, with your " Rothschilds" { B.C. 0001} ?

veyron's picture

As they would say: It's always darkest before the dawn.

Although its not clear if they can survive the night ...

BlueCollaredOne's picture

I was a lurker on this site for quite some time. I would always read stories like this about how ZH would discover how some number was wrong, which would in turn really show how grim shit is. Lo and behold a few months later the news would become public, and the Tyler's would always be vindicated in my view. That motivated me to sign up and try to contribute as much as I can.

It is truly a sad world when I have to rely on a fringe blog ( don't take the wrong way) for accurate and truthful news.

Fuck you MSM, if I can figure this shit out, you have no excuse.

Advoc8tr's picture

They are not interested in 'figuring it out' and any excuse trotted out will be lies intended to save their necks ...... their mission BlueCollaredOne is to intentionally deceive you (us)

BlueCollaredOne's picture

I'm in agreeance, which is why I only read any MSM piece now just to see what lies people are fed.

The media used to be the entity that were in charge of keeping politicians, bankers, and CEO's accountable. Now they are just around to soothe any natural fears that the sheep naturally feel by simply having their eyes open to what's going on around them.

Dead Canary's picture

Public opinion polls are unnessasary. All you need to do is read the MSM to know what people are being told, err, thinking.

Cathartes Aura's picture

it's been my (long held) experience that most of the world's truth is found around the edges, rarely dead center.

It is truly a sad world when I have to rely on a fringe blog ( don't take the wrong way) for accurate and truthful news.

The media used to be the entity that were in charge of keeping politicians, bankers, and CEO's accountable.

I think if you look into both those statements, you'll find that "the media" has been in league with "the overlords" (whoever you want to point fingers at all along) for as long as "the media" has existed - it's a tool to be used to maintain control over the narrative, and has been. . . forever?

all truths, real truths, are to be found away from majority opinions, tucked away in the corners, only realised as information once one's mind has begun to connect the dots, or whatever meme one wants to use to explain,

waking up to truths.

smb12321's picture

No, it's like FOX or NPR. News is a matter of interpretation and emphasis.  I truly believe that most the nitwit "journalists" believe what they say.  Most truly think that spending and debt is the road to success; they really think that increasing taxes of a few rich folks is "good" and yet realize it does nothing for the deficit.   They firmly believe that the State's job is to take care of its citizens and it only has their best interest at heart. So, yes it is a con game but not in the way you suggest.

Central Bankster's picture

The first rule of fight club is, dont talk about fight club.