Spain has already asked for and been granted a bailout for its banks.
The worry now is that the financial demands of some of the country's 17
autonomous regions will mean the country will have to seek a full bailout, in
the same way that Greece, the Republic of Ireland and Portugal did.
Many of Spain's regions have high borrowing needs, and speculation is
growing that a number of them will follow Valencia and ask formally money from
Madrid at a time when the central government itself is having trouble borrowing
money.
The spectre of Spain’s deepening crisis continues to rattle markets and
against this background companies are finding it increasingly difficult to
source funding from institutions. Now more than ever is a time to focus on
cash-flow and ensure that all receivables are dealt with in a timely fashion.
Sloppy credit control practices could prove very costly.
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