Arab Today, arab today spain tells banks to act on toxic realty loans
Last Updated : GMT 18:00:57
Arab Today, arab today
Arab Today, arab today

Spain tells banks to act on toxic realty loans

Arab Today, arab today

Arab Today, arab today Spain tells banks to act on toxic realty loans

Madrid - Arabstoday

Spanish banks must raise an additional €50 billion (Dh245 billion) to cover their exposure to toxic real estate loans and assets accumulated during a construction boom that went bust with the fin-ancial crisis, according to new regulations unveiled Thursday. Banks unable to meet the new provisions to cover troubled holdings will have the option of presenting merger plans to the government by May and could get government assistance from an existing bailout fund that will be strengthened with an addition €6 billion, said Economy Minister Luis de Guindos. Cleaning up the festering holdings of Spain\'s ailing banking system is a key issue in the drive by the new centre-right government to restore investor confidence in the Eurozone\'s fourth largest economy, and prevent Spain from being forced into a bailout like Greece, Ireland and Portugal were forced to take. Banks that want to meet the new provisions without merging will have until the end of the year to do so, de Guindos said. Spanish banks have about €175 billion in troubled holdings, and de Guindos said the new rules would prompt many banks to reduce the value of their property holdings. That would lead to further price drops for real estate that saw stunning increases from the mid-1990s until the crisis hit in 2008 but still have not declined as much as experts believe they should. Article continues below Provisions The reform plan is similar to a 2009 push that forced banks to increase provisions against real estate holdings and bad loans to 30 per cent and set off a wave of mergers, but de Guindos said the new rules to protect banks from losses will boost that figure to as much as 80 per cent. The cabinet of Prime Minister Mariano Rajoy planned to approve the measures yesterday. They will be sent to Parliament for final approval, but passage is guaranteed because Rajoy\'s Popular Party has an absolute majority. The last banking reform plan under Spain\'s previous Socialist government saw the number of smaller banking chains called \"cajas\" dwindle from 42 to 15, and de Guindos offered no prediction of how many will remain after the new rules are put into place. \"I don\'t know how many will be left after the process, but the aim is to have a banking system with stronger and healthier institutions and better corporate guidance,\" he told reporters.  

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 spain tells banks to act on toxic realty loans Arab Today, arab today spain tells banks to act on toxic realty loans

 



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 spain tells banks to act on toxic realty loans Arab Today, arab today spain tells banks to act on toxic realty loans

 



Arab Today, arab today Designer prepared new set of ornaments

GMT 02:45 2017 Wednesday ,28 June

Designer prepared new set of ornaments
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 Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today

GMT 08:23 2017 Saturday ,24 June

Actress Feryal Yussef received new drama offers

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
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