The northern Spanish region of Catalonia formally requested €9.1 billion for 2013 from the central government's regional liquidity fund, and called for a lighter deficit reduction target.
The prosperous but indebted region requested €5.4 billion from Spain's regional liquidity fund in 2012, set up to help indebted regions pay their debts. Catalonia faces €13.6 billion of debt redemptions this year. The regional government also said that the deficit reduction target should be reduced if pressure on the central government to slash its deficit eases.
Spain's regional liquidity fund, known as the FLA, has €23 billion at its disposal this year and the government has said it will raise more money if necessary. The rescue fund had a budget of €18 billion in 2012, when nine regions requested aid. The high-spending regions were largely shut out of debt markets in 2012, making a government lifeline essential to pay their bills.
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