Credit Rating of Independent Catalonia
Session
Management, Business and Economics
Description
This paper aims of estimating the sovereign credit rating, which an international credit rating agency might grant to an independent Catalonia. For the international markets, such a qualification is very vital to determine the role of an independent Catalonia as a potential debtor. These qualifications are essentials to establish the capacity of financial obligations of the independence of Catalonia and the conditions under which Catalonia will have access to financial sources in the international financial markets. The sovereign risk is the risk assumed by the international creditors in order to lend funds to an independent state considering the legal actions taken against the debtor. An independent Catalonia will entail different mechanisms to finance its activities and influence its growth: taxes (fiscal policy), money creation and regulation of interest rates (monetary policy), and public debt issuance (economic and financial policy). This paper evaluates political, economic, and financial state of independent Catalonia and its potential implications in relation to European Union (EU) to assess Catalonia’s sovereign risk; hence it gives independent Catalonia BB credit rating.
Keywords:
Catalonia Independence, Spain, Credit Rating, European Union, Sovereign Risk
Session Chair
Edmond Hajrizi
Session Co-Chair
Naim Preniqi
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-437-54-7
Location
Durres, Albania
Start Date
27-10-2017 1:00 PM
End Date
27-10-2017 2:30 PM
DOI
10.33107/ubt-ic.2017.255
Recommended Citation
Ademi, Bejtush, "Credit Rating of Independent Catalonia" (2017). UBT International Conference. 255.
https://knowledgecenter.ubt-uni.net/conference/2017/all-events/255
Credit Rating of Independent Catalonia
Durres, Albania
This paper aims of estimating the sovereign credit rating, which an international credit rating agency might grant to an independent Catalonia. For the international markets, such a qualification is very vital to determine the role of an independent Catalonia as a potential debtor. These qualifications are essentials to establish the capacity of financial obligations of the independence of Catalonia and the conditions under which Catalonia will have access to financial sources in the international financial markets. The sovereign risk is the risk assumed by the international creditors in order to lend funds to an independent state considering the legal actions taken against the debtor. An independent Catalonia will entail different mechanisms to finance its activities and influence its growth: taxes (fiscal policy), money creation and regulation of interest rates (monetary policy), and public debt issuance (economic and financial policy). This paper evaluates political, economic, and financial state of independent Catalonia and its potential implications in relation to European Union (EU) to assess Catalonia’s sovereign risk; hence it gives independent Catalonia BB credit rating.