Spanish Regions' Financials Face Stress From Spain's Political Stalemate
Spanish regions face stress from the national political stalemate. DBRS sees the financial positions of regional governments as already negatively affected by:1) National government delays in transferring to the regions the 2019 additional transfers from the financing system (entregas a cuenta);
2) Delays to the scheduled 2017 value added tax (VAT) adjustments the regions were expecting this year;
3) Expenditure constraints implemented to compensate for the revenue delays;
4) The absence of national government 2020 forecasts entregas a cuenta that complicates next year's budgetary process for regions.
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