How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Daily brief -Thursday 23 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
Spanish Banks need €40 billion : IMF
An IMF report on Spanish banks will show the country's troubled lenders need a cash injection of at least €40 billion, Reuters on Thursday quoted unnamed sources in the financial sector as saying.
The report, due to be published next Monday, will also outline overall needs of €90 billion to clean up Spain's entire banking sector, with healthy lenders covering a big chunk of this sum, one of the sources said.
"The capital shortfall for the Spanish banks will be around €40 billion after taking into account the capacity from some of the entities to cover expected losses with their own resources," the source told Reuters.
Government sources declined to confirm the figures and one source who has been briefed on the matter cautioned that the IMF may not have finalized its estimates.
The figure is in line with an estimate by Banco Santander Chairman Emilio Botín, who reckons that €40 billion should be enough to cover the needs of nationalized Bankia and its parent Banco Financiero y de Ahorro, which has asked the government for an additional €19 billion, and those of the 3 other lenders that have been taken over by the Bank of Spain: CatalunyaCaixa, NovaGalicia and Banco de Valencia.
The deputy governor of the Bank of Spain, Javier Ariztegui, said Thursday CatalunyaCaixa and NovaGalicia need an additional €4.5 billion each. The state has already injected €2.465 billion into NovaGalicia and €2.968 billion into CatalunyaCaixa.
Reuters also quoted an EU official who said the final bill was still a moving target. "You've got bad property loans that still haven't flowed through the system, and you have a recession. All the banks' balance sheets are going to be under increased pressure in the months ahead as a result," the EU official said.
"When it comes to Spain, there would appear to be two ways to go: a minimalist approach in which only the bare minimum of banks are recapitalized, and a maximalist approach where you try to get ahead of the bad loans in the pipeline and recapitalize all the banks that need it," the official added.
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
- Claiming Unemployment Benefits in Spain
- Bank guarantees - when things go wrong
- Claiming Spanish Benefits in Spain