Spain to Loan Money to Individual Regions in Return for Austerity

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Spain Deputy Prime Minister Soraya Saenz de Santamaria announced Friday the government would give loans to 14 regions to allow them to erase debts, according to Euronews. The regions being offered loans are going to receive the funds in exchange for agreeing to self-impose austerity measures to deal with deepening debt.

* The 14 regions will be allowed to borrow more than 17 .5 billion euros.

* The Bank of Spain released information concerning the overall level of Spain's indebtedness. Its numbers indicate Spain's current debt has reached 72.1 percent of its yearly gross domestic product, according to El Pais.

* That is double from the 35.5 percent Spain's debt level was at in 2008. The nation reportedly accumulated an additional 13.2 percent of its GDP in debt in the first quarter this year.

* The Bank of Spain estimates the nation's overall indebtedness at more than 774 billion euros.

* Spain's financial crisis led Foreign Minister Jose Manuel Garcia-Margallo to warn Thursday that allowing Spain to fall would have dire consequences for the rest of the eurozone. Spain's long-term borrowing costs hit a high of 7 percent, which is considered unsustainable, according to The Guardian.

* Finance Minister Luis de Guindos had tried to smooth over some of the nervousness caused by this increase in the interest rate of 10-year bonds, saying he was confident the nation was going to act decisively to curb its financial instability.

* Spain is due next week to solidify the amount it needs to ask for from the rest of the eurozone to shore up its banks. The government is waiting for the results from two independent assessments.

* According to The Telegraph, a meeting of the G-20 due to take place this weekend in Mexico will see European financial leaders set aside time to keep a close eye on elections in Greece on Sunday. In the event the Syriza Party wins the election, G-7 leaders are planning to meet to discuss how best to protect Spain and Italy from financial consequences of Greece's decision.

Vanessa Evans is a musician, traveler, and freelance writer with an interest in European studies and events.

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