28.08.2012
By Simon Miller
Spanish region Catalonia is to look for an emergency €5.02bn (£3.97bn) credit line from the central government as it struggles to refinance its debts.
However, the largest region in Spain risked angering central government by insisting that it would not accept any further political conditions from Madrid.
Catalonia will become the third region to tap into the €18bn government rescue fund following Valencia and Murcia and up to three more regions are expected to access the bailout.
Following a meeting with president of the European Council Herman Van Rompuy, Spanish prime minister Mariano Rajoy told reporters: "Catalonia can’t face the redemptions it has at the moment, it is the big problem in this country. Spain will help Catalonia as it has done before and we’ll discuss with them everything that needs to be discussed.”
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