The Catalan savings bank owed the 1.63% of the oil company Repsol. By selling all its stakes, it earned 448 million, which represents a profit of 186 million euros. The financial entity made this operation to increase its core capital, in order to be ready for the banking stress test.
Various banks and savings banks are asking the Catalan Government to extend the total bond amount to 3,000 million euros. The Catalan Ministry of Economy will make the decision whether or not to extend the amount on Friday. The Catalan Government's debt bonds were issued for an initial amount of 1,890 million euros and further extended to 2,500 million euros due to their massive purchase by Catalan citizens
As a result of the Catalan Government’s success in bond sales, they have made the decision to increase the overall bond amount to 2,500 million euros. The bonds can be purchased until the 12th of November by private citizens.
Today banks and savings banks started selling the treasury bonds announced by the Catalan Government two weeks ago to get cash. On the first day, about 1,000 million euros have been bought. If this pace continues, the bonds will be sold out by next week. The quantity on sale is 1,890 million, which could be increased to 2,500.
Banc Sabadell received 27.4% less profit compared with the same period in 2009. The net profit has been calculated after deducting a provision to cover a potential increase of debtors. The financial entity saw credit loss provision increases of 38% until its third trimester.
The difference between what an autonomous community produces in terms of revenues and what it finally receives, once the Spanish State has redistributed those revenues among all the communities, has only officially been quantified once in history. It was in 2005, following an agreement of Prime Minister Zapatero with the Catalan nationalist forces. Catalonia’s political and business class have called for the systematic publication of the “fiscal balances” several times.
The UK rating agency stresses that measures to cut public expenditure will have to be accelerated. The recent decision by the Catalan Government to issue bonds to obtain cash have influenced the agency. Moody’s is sticking to its short-term rating and lowers-down the long-term one. The Government will now have more difficulties in getting funding in international markets.
Citizens will be able to buy treasury bonds of the Catalan Government’s debt worth 1,000 euros each at a 4.75% interest rate. In the framework of the electoral campaign, the Opposition denounced that the Catalan Executive has “its drawers empty, without money”. The Catalan Government has denied this and accused the opposition of being irresponsible in order to get votes.