Arab Today, arab today eu quizzes spain italy greece portugal on bank aid
Last Updated : GMT 16:22:08
Arab Today, arab today
Arab Today, arab today

EU quizzes Spain, Italy, Greece, Portugal on bank aid

Arab Today, arab today

Arab Today, arab today EU quizzes Spain, Italy, Greece, Portugal on bank aid

EU, National Bank and Greek flags float
Brussels - AFP

The EU is seeking information from Spain, Italy, Greece and Portugal to determine if they have illegally supported their frail banks, officials said Tuesday.
The issue is potentially serious since if the four cash-strapped eurozone countries are found at fault they would have to repay the state aid and find other funds to prop up the banks.
"We can confirm that administrative letters have been sent to Spain, Italy, Portugal and Greece," European Commission spokeswoman Lucia Caudet said, insisting there was no formal investigation at this point.
The Commission, the European Union's executive arm which polices the bloc's competition rules, wants to know if the four countries have allowed their banks to include Deferred Tax Assets as part of their core capital.
A DTA is effectively a loss which the bank keeps on its books to set against future profits, thereby reducing its tax burden.
Core capital, as a percentage of a bank's total assets, is a key measure of a bank's strength.
Authorities worldwide have steadily increased the amount of core capital banks must hold after the 2008 financial crisis and ensuing eurozone debt crisis saw Greece and Portugal bailed out, and Spain seek EU help to stabilise its banks.
EU regulations "already envision that DTA cannot be considered part of core capital and should be phased out by 2019," Caudet said.
She said the rules however did not clearly say that use of DTAs by the banks amounted to state aid and "that is exactly what we are trying to find out now."
Commission spokesman Alexander Winterstein said it would take some time to evaluate the responses.
"At this stage, there is absolutely no view as to whether state aid is involved," he added.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eu quizzes spain italy greece portugal on bank aid Arab Today, arab today eu quizzes spain italy greece portugal on bank aid

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today eu quizzes spain italy greece portugal on bank aid Arab Today, arab today eu quizzes spain italy greece portugal on bank aid

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today How to do your own Ramadan corner?

GMT 15:53 2017 Saturday ,27 May

How to do your own Ramadan corner?
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday