Valencia Announces SOS, Needs To Tap Government LIquidity Support Just Eurogroup Accepts Spanish Bailout Plan

UPDATE: It would appear the right hand has no idea what the left hand is doing in Spain, as via Bloomberg:

• *MONTORO SAYS VALENCIA HASN'T SOUGHT RESCUE

but

• *VALENCIA TO TAP SPAIN'S REGIONAL FINANCING FACILITY
• *VALENCIA GOVT COMMENTS IN STATEMENT ON WEBSITE TODAY

Just as today's largely expected announcement that the Eurogroup has formally agreed to accpet the Spanish bail out (details still lacking), the Spanish region of Valencia just became the second to officially demand a bailout following Catalunya's comparable announcement at the end of May, and has announced it will need to tap the government liquidity mechanism. Kneejerk reaction: EURUSD sharply lower and below 1.22 for the first time in days.

From Reuters:

Spain's heavily indebted eastern region of Valencia said on Friday it would apply for help under the government's 18 billion euro plan passed on Thursday aimed at helping regional finances.

The plan comes with strict conditionality that a region stick to its deficit cutting plans.

Concurrent with this announcement, Spain also announced an update to its deficit projections, whose details are meaningless as they will be revised adversely shortly, which confirmed that the Spanish economy continues to deteriorate at an accelerating pace.

Comments

[doomandbloom]

When we run out of bread...we need more circus....

more football por favor..

[viahj]

maybe Valencia and Catalunya shouldn't have spent so much hosting F1 and Moto GP rounds.

[Catullus]

Maybe they'll actually pay the accounts that are in arrears.

[Peter K]

Viva Espana :)

BTW, Socialism es muerte.

[news printer]

http://www.justin.tv/pct26#/w/3449872224/19

[hugovanderbubble]

Type in Bloomberg,

VALMUN

GENCAT

ANDAL

then...search for liquidity,amplitude and depth...(ups impossible)

ok,

Then...ready FOR DEBT HAIRCUTS in SPANISH GOVERNMENT AND SUBGOVERNMENT DEBT,,

NEXT country ITALY

Then France...

-Credit Agricole iS IN DEFAULT

*Spain will be downgraded by Moodys

ALL SPANISH BANKS ARE IN DEFAULT ALL

but FRENCH ONES TOO

COMMERZBANK IS A PIECE OF SHIT in GERMANY

ALLIANZ has the biggest stake in POPULAR losing more than 500 Mn euros, 

*GENERALI IS TOAST

-

[magpie]

Ugly action by Ibex and MIB

[youngman]

Well when you see free money being thrown around.....its much easier to ask for it than earning it.....why NOT ask for some of it...its all free

[debtor of last ...]

Stop the bailouts and let the insolvent circus burn, please! If the markets can't do their work, the fire will.

[Peter K]

So the EUR/USD is nicely set up for the post LDN fix ramp. Just waiting now for the sugar daddy to appear:)

[Josephine29]

Good job the construction industry is going so well.

Construction numbers are unsurprisingly weak too

The European statistics agency has reported on European construction activity and I guess you have already figured which side of the ledger Spain is likely to be on! For the Euro area as a whole construction rose on the month by 0.1% but was 8.4% lower than a year earlier. Breaking it down on a monthly basis we saw.

the largest decreases in Slovenia (-17.5%), Hungary (-4.1%) and Spain (-3.3%).

And on an annual basis.

The largest decreases were registered in Spain (-24.8%), Slovenia (-23.7%) and Portugal (-16.4%),

Spain has seen a fall in every month in 2012 in construction which let’s face it is hardly a surprise. I was also interested to see such a large negative annualised number for Portugal the same Portugal which is supposed to be “on track”. In fact the International Monetary Fund was praising its again only on Monday although I did note a mention of this.

the daunting challenges that Portugal still faces

http://www.mindfulmoney.co.uk/wp/shaun-richards/spains-problems-are-added-to-by-more-bad-loans-at-her-banks-and-falling-construction-and-industrial-production/

[The Onion Of Tw...]

And Ryanair (think SWA for comparison) has just announced that it is stopping many flights from the UK to Madrid and Barcelona from this winter. It is unhappy with increased fees at the airports. That's another 2,000 Spaniards out of work and the loss of a very cheap (if crappy) airline that was flying 2.2 million passengers between the UK and Spain. Many of them will probably now fly elsewhere.

[allbetsoff]

No brains no headache.. Would make a great slogan for our Spanish politicians.  Just announced here in Spanish journal, La Expansion, that part of the anti crisis measures is to increase taxes on school materials for children from 4% to 21%.  Bu they, we got the 100 billion to try and bailout our insolvent banking system.  Viva la libertad!!! 

[allbetsoff]

The Spanish 10 year has been ticking higher all morning..  heading now toward 7,3%.. Going to be an interesting weekend here in Eurolandia.. Euro summit anybody???

[disabledvet]

should be a "crisis committee"...the time for summits passed three years ago. there has been no leader on this issue from the get-go...at ANY level. the question now is "what are the consequences for failure?" as we can see vis a vis the euro "not good on that front."

[magpie]

Obama could create a Euro-Czar to go with the Euro-Commissars.

[Martin W]

Should be a "kamikaze meeting" the time for crisis committees passed a year ago.

[The Reich]

If Valencia would have been a Spanish bank, we would rescue it.

[covert]

bad mistake.

http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/