The risk rating agency Moody’s believes that the economic impact of DANA, which will affect both the public and private sectors, will strain the accounts of the autonomous communities and city councils, as it will hamper collection and increase the need for social assistance.
“Economic recovery in affected regions will be a slow and expensive process“Warns Moody’s in a report published this Friday and collected by EFEin which he points out that the economic impact of the catastrophe is still unclear, which has been especially intense in Valencia.
In this province, 4,500 businesses have been affected – “half of which face potential closure” -, at least 53,000 hectares of crops are damaged and insurance losses will exceed 3.5 billion euros, according to the first data , he points out.
Valencia currently has the weakest fiscal situation in Spainadds Moody’s, which expects it to deteriorate further in the coming months due to both the economic slowdown in affected areas such as higher social spendingwhich will lead the region to resort to state liquidity mechanisms.
This leaves Valencia with very limited capacity to take on new infrastructure spending obligations, such as the necessary recovery plan to repair damage or a program to prevent future catastrophes.
The agency also analyzes the aid approved so far and concludes that, although the package of measures approved by the Government will help with recovery costs, the scale of the catastrophe in infrastructure and economic activity will affect the rating of the affected regions. especially Valencia.
#Moodys #predicts #slow #costly #process #Valencia #weakest #fiscal #situation #Spain
