MADRID—Spanish lawmakers on Thursday approved tough austerity legislation, after the country's borrowing costs neared a new record high at a morning bond auction and its budget minister warned the government is running out of cash to pay its bills ... "There is no money in the public coffers. There's no money to pay for public services," Spanish Budget Minister Cristobal Montoro said in a speech to Parliament Thursday.That's not a good thing.
Thursday, July 19, 2012
Running Out Of Cash
Uh oh.
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3 comments:
What are you so worried about? I saw that the Germans approved a 100 Billion* or so bailout, so party on, Spain!
* I don't recall if it was euros, dollars, interwebs, or puking cat videos. It's not like anybody is going to pay it back.
In Spain, bankruptcy law (ley concursal, in Spanish) provides debt settlement plans that may reduce debt up to a maximum amount of half of the original debt, if I’m not mistaken, or an extension of the payment with a period of five years maximum. If the corporation cannot meet its liabilities on a regular basis, they may be facing insolvency and bankruptcy.
The citizens are the ones affected by this situation. If the government doesn’t have the money to pay for public services, they wouldn’t be able to serve and support their nation. Local officials must create an efficient plan of how they're going to budget their resources. They must really prioritize the things that will cater to people’s needs.
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