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 -Friday 29 May 2015
- 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 warns Bankia investors of clean-up costs
Recent sharp rises in the stock of troubled Spanish banks Bankia and Banco de Valencia has prompted Spain to remind investors that shareholders in rescued banks receiving aid from Europe could suffer losses.
Spain's state-backed restructuring fund, the FROB, said late on Thursday shareholders must participate in the cost of the clean-up of the banks as part of the conditions attached to the up to €100 billion European credit lifeline.
Shares in Bankia, virtually wiped out after the bank was rescued by the state in May, have nearly doubled in price to €1.6 since the beginning of August in anticipation of the first tranche of cash from Europe.
Shares in illiquid Banco de Valencia have tripled to 0.3 euros in the same period.
"In our view, the FROB is trying to stop the speculation around the share price of Bankia and Banco de Valencia," said Francisco Riquel, analyst at broker N+1.
"The recent share price performance is completely irrational, and reflects a combination of short covering and speculation," he added.
Bankia, Banco de Valencia, CatalunyaCaixa and NovaGalicia are the four banks rescued by the state that are most urgently in need of funds. CatalunyaCaixa and NovaGalicia are unlisted regional banks.
Spain is currently carrying out a bank-by-bank stress test of its lenders due to finish in the second half of September, conducted by external consultant group Oliver Wyman and based on the inputs from 4 independent auditors.
Banks with capital shortfalls must present recapitalisation plans by early October with the European Commission expected to approve those of the 4 state-rescued banks by November.
The conditions attached to the European rescue funds make clear that banks receiving state aid must contribute to the cost of restructuring as much as possible with their own resources to minimise the cost to taxpayers.
Latest News & Stories
- Basque Nationals Only Party in Spain Growing in Support
- Ryanair change of strategy sees profits bounce back in 2014
- Rato accused of giving children €2.5m to avoid bond
- Spain 3rd most popular destination for expat Brits
- Spanish air traffic controllers call four partial strikes
- Spain revises percentage of population at risk of poverty to 29%
- Spain overturns Andalusian anti-eviction law
- Amazon starts paying Spanish corporate tax on retail sales
- EU Nationals resident in UK denied referendum vote
- Vodafone Spain to increase fibre optic speed to 300 Mbps