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 28 April 2016
- 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
- Bank of Spain sees private consumption growth steady at start of year
- “Human fecal contamination” at origin of bottled water health scare
- Catholic nuns undergo virginity test to prove priest's innocence in sex abuse case
- EU may fine Spain for missing budget targets
- Leader of Manos Limpias union wants to withdraw all court cases
- Civil Guard officer arrested for shooting driver over traffic spat
- PSOE come up with last-ditch offer in bid to avoid new elections
- Spain's Sabadell posts 44% profit jump boosted by TSB purchase
- Many British Expats 'Will Repatriate' : Study
- Spain riled over dance hit ‘I took a pill in Ibiza’
- Claiming Unemployment Benefits in Spain
- Bank guarantees - when things go wrong
- Claiming Spanish Benefits in Spain