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 -Wednesday 24 August 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
'Spain Should Take Toxic Assets Off Banks Books' : Montoro
Spain should lift toxic assets off banks' balance sheets with European support, Budget Minister Cristobal Montoro said.
"A first very important policy is to clean up the banking system," Montoro told a conference today in San Lorenzo de El Escorial, near Madrid. "We need to segregate from those balance sheets the assets that are damaged by the crisis."
Spain's government, which had ruled out creating a bad bank to buy soured assets, has indicated it may create such a vehicle since seeking a European bailout for its lenders last month. Banks have about €180 billion of problematic assets linked to the real-estate industry on their books as the property slump enters its 5th year.
The mechanism for separating the assets - whether it will force all banks to comply and whether there will be one centralized holding company - will be set out in the agreement governing the European rescue package, Montoro said. Spain is negotiating the terms of as much as €100 billion of emergency loans for its banks. Finance ministers are due to discuss the accord at a meeting in Brussels today.
The European Commission has a "clear preference" for segregating problematic assets and the policy has "advantages," Economy Minister Luis de Guindos said June 26.
De Guindos, in his second banking overhaul since the government came to power in December, told banks to transfer into separate management vehicles property they have taken onto their books in exchange for loans. Still, each bank can set up its own vehicle and the rules allow them to continue to fully own the unit, reducing pressure to put a market price on the assets.
Latest News & Stories
- Vodafone Spain expands 4G roaming to 100 countries
- Public works contracts fall by 20% due to political impasse and deficit reduction
- 24 arrested in Spain in joint EU operation against child pornography
- PP accepts Ciudadanos’ demand for further-reaching corruption measures
- Gibraltar signs LNG deal with Shell to combat electricity shortages
- Over 204,000 Moroccans Affiliated to Spanish Social Security
- Spain's Yoigo gains 19,900 mobile lines in July
- Orange Spain adds free EU roaming to Family pack
- Despite devalued post-Brexit pound, British visitor numbers to Spanish hotels up 15%
- Ibiza flight delayed after ‘police officer’s gun accidentally goes off’
- How and where to complain about my Bank in Spain
- Bank guarantees - when things go wrong
- Bank Charges in Spain