How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
... Telefonica are NOT the only service provider of Telephone Lines, Internet Access or Mobile Phones?
Tumbit recommends Telitec Communications. Find out how Telitec Communications can help you here!
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- USD weekly currency update- 24 February 2017
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Bank of Spain prepares Bankia plan
The Spanish government and the Bank of Spain are preparing a clean-up plan for lender Bankia , a government source said on Monday, while declining to confirm a report that the move would include a state-backed loan.
The reform included a big injection of cash and changes to the Bankia's management, El Pais reported on Monday.
"It is true that (they) are finalising a plan for Bankia, but none of the figures can be confirmed because they are still not decided," the source said.
The clean-up of Bankia's balance sheet, which holds around 10 percent of domestic deposits and is highly exposed to the collapsed property sector, would involve billions of euros in a state-backed loan at a rate near 8 percent, El Pais said.
The Bank of Spain and Bankia declined to comment.
Spain's banks were forced to present a plan to the Bank of Spain on how they would raise capital and increase provisioning against potential bad loans from the battered property sector at the end of March.
Bankia told the central bank it can meet requirements for provisions against real estate losses without public money or merging with another entity, sticking with its standalone strategy.
Citing financial sources, El Pais said the government would use recently passed financial industry reform to refinance the bank through a hybrid form of debt known as contingent capital and which converts to equity in times of stress.
The bank, and its parent company Banco Financiero y de Ahorros (BFA), could need 5-10 billion euros, the paper said.
Bankia is at the core of concerns over whether the country will have to seek an Ireland-style international bail-out to recapitalise lenders.
Latest News & Stories
- Five women killed in four days as gender violence spikes in Spain
- Spain struggles with spike in migrant arrivals at North African exclave
- New Route Manchester - Seville
- How millions of Spanish fans are watching pirated soccer on Facebook Live
- Spain says butane gas-bottle truck theft not terrorist related
- Facebook user faces €30,000 fine for posting video of Spanish policeman
- Hundreds of migrants cross into Spain's Ceuta in second wave in 3 days
- Spain will drop out of the world’s 25 largest economies by 2050
- Brexit Worry as Spain Predict Financial Disaster
- 'That bus has gone' - EU sees no Brexit U-turn now