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 was only a shade higher than the €59.3bn final tally. We are now told that the regional bailout fund has assisted all of Spain’s regions with €821mm to spare.
From ZeroHedge, these are the bailout requests so far:
- 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
The Spanish finance ministry must employ forecasting geniuses. First, they calculate almost exactly the amount required by the insolvent banking system, and follow this coup with a dead on assessment of regional financing needs. Then again, their budget deficit projections have been way off, so perhaps something else accounts for these remarkably prescient forecasts while the country is under extreme economic and fiscal duress.
Jean-Claude Juncker says, “When it gets serious, you have to lie.” It must be serious in Spain: