Tag Archives: de guindos

Spain creates 120 billion euro bad bank to absorb toxic assets

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Spain is to create a “bad bank” to absorb the “toxic assets” of financial entities in Spain, with an expected eventual capitalisation of around 120 billion euros. The idea is to setup a nationalised entity which will take the bad loans and empty houses off the books of the Spanish banks, allowing these banks to free up resources and improve their balance books. The million odd homes estimated to be owned by Spanish banks will Continue reading Spain creates 120 billion euro bad bank to absorb toxic assets→

Spain asking for a “total emergency bailout” of 300 billion euros from Germany, according to Reuters

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Reuters, the news agency, has claimed that Spain has secretly asked Germany to prepare a 300 billion euros bailout package to rescue the state after a number of regions within Spain have claimed bankruptcy and asked for bailouts. Citing a “senior government official”, the news agency said that: Spain has for the first time conceded it might need a full EU/IMF bailout worth 300 billion euros ($366 billion) if its borrowing costs remain unsustainably high, Continue reading Spain asking for a “total emergency bailout” of 300 billion euros from Germany, according to Reuters→

We need 12 billion to save Bankia (and the economy will shrink another 0,3% this quater)

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De Guindos, the economy minister, has announced that Madrid will have to sign a check for 12,000,000,000€ to save Bankia, the failed bank that went titsup last week, instead of the original 4,5 billion euros expected. (El Mundo) Interestingly enough, that’s almost as much as Madrid slashed off the health and education budgets (14 billion) in an attempt to make savings and stop the country running out of cash. Bankia has an exposure of some Continue reading We need 12 billion to save Bankia (and the economy will shrink another 0,3% this quater)→

The only thing colder than the wind today is the governments plan for Spanish banks (and stuff the home prices)

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Get your house in order, and quick. Otherwise we’ll merge or close you. That’s the basic attitude of the government plan to stabilize the Spanish financial sector, published yesterday by Minister for Economy Luis de Guindos. The plan Guindos as it is known, will force banks to accumulate by years end 50 billion euros in cash and assets to write off losses from the real estate sector. 35 billion in cash, 15 billion in assets. Continue reading The only thing colder than the wind today is the governments plan for Spanish banks (and stuff the home prices)→