Spain Public Debt Rises

Spain’s public debt rose by €11.16 billion ($12.37 billion) to €1.13 trillion in March, the Bank of Spain said on Wednesday, the fourth straight month of increases, Reuters reported. Debt was 101.39% of GDP in March, up from 100.38% a month earlier, according to Reuters’ calculations using the National Statistic Institute’s latest data on economic output which covers the four quarters of 2016. The debt-to-GDP ratio would be 100.33% using the government forecast for economic output included in its 2017-2020 stability program, the economy ministry said. The 2017 budget proposal assumes a ratio of debt to economic output of 98.8% in 2017 compared to 99.4% last year. It aims to cut its public debt to 97.7% of GDP in 2018. Meanwhile, several Spanish banks, including state-owned Bankia, have shown interest in a potential merger with Banco Popular, as its new management considers options for how to cope with billions of euros in toxic assets.