On Friday the Bank of Spain announced that in the third quarter of 2014 the public debt of Spain increased 0.75% to a record €1.02 billion which makes up 96.8% of country's GDP.
According to analysts, the Spanish public debt more than doubled over 6 years of the economic crisis. The results for the first half of the year showed the debt rising to the amount of 98.4% of GDP, but in the III quarter the revision of the macroeconomic indicator demanded by the European Commission led to the lowering of the percentage rate of the public debt to GDP.
Experts explain the growth of public debt by increasing debts of the central administration and the autonomy administrations. It is noteworthy that local authorities cut their indebtedness.
The central bank of Spain also says that the government will allocate €36.5 billion for the public debt payment. This sum exceeds unemployment benefits and occupational retraining of the unemployed.