By Simon Miller

The Spanish central government is to make it a criminal offence for public officials to run up unauthorised debt.

As the government sets out an €8bn (£6.6bn) transfer for its debt-ladened regions, its budget minister Cristobel Montoro said officials would not be allowed to run over set budgets.

" We are going to demand criminal responsibilities - criminal in the sense that a public manager, who could be a politician or a manager appointed by a politician, cannot spend more than the budget limit. A government official falsifying public accounts in the same way that a private manager has to face criminal responsibilities if he falsifies his company accounts, especially if it is listed," said Montoro.

The stringent changes comes as the central government gets ready give the cash-strapped regions €8bn six months early as well as other lquid measures to east pressure.

It will also offer loans via the Official Credit Institute to help regions settle bills for suppliers in a couple of months.

“We are submitting these mechanisms on the condition that the regions present fiscally viable plans,” said Montoro.

Home     More News

Financial Risks Today Beta Banner

Other stories you may find of interest:

Holding out for a debt restructure
Greece stands before a default abyss but, as Simon Miller discovers, before it rushes to restructure, there are litigating risks from international trade treaties to consider

OTC reforms causing confusion among sovereigns
Fundamental reforms of over-the-counter (OTC) derivatives markets around the world are having a profound impact on how derivatives are used, raising particularly challenging questions for sovereign institutions, according to a BNY Mellon report.

Ratings watch euro-countries need €1trn in debt sales
More than half the debt needed to be borrowed in the eurozone in 2012 will be from countries facing rating downgrades according to Fitch Ratings.

This website is a part of Perspective Publishing Limited, registered in England No 2876166.