Banks go it alone as Spain exits bloc aid programme

LAST UPDATED: 2 Jan, 2014 @ 11:13
1
SHARE
Banks go it alone as Spain exits bloc aid programme

SPAIN has entered the new year without eurozone support for its banks, following the conclusion of the bloc’s aid programme.

The support, which amounted to €41 billion during the debt crisis, has brought the country’s banks back onto a sound footing, according the European Stability Mechanism (ESM).

ESM head Klaus Regling said: “Spain’s programme exit after one year is an impressive success story,”

He added: “Despite the challenges ahead I am confident that the ESM’s support, combined with structural reforms, will allow the Spanish economy to achieve stability and substantial growth,”

In 2012 Madrid managed to negotiate a €100 billion deal with eurozone states to bail out the nation’s banks, which were on the verge of collapse. From the total loan secured, Spain ultimately spent only €41.3 billion.

Regling concluded: “The Spanish success shows that our strategy of providing temporary loans against strong conditionality is working,”

JOIN THE CONVERSATION...

The Olive Press are not responsible and do not moderate individual comments before they are posted. Anyone who uses racist, sexist, homophobic or xenophobic language or hate speech will be blocked.
  1. What a load of tosh from ESM’s Klaus regling, ‘Spanish banks on sound footing’, and ‘impressive success story! lol

    Bank of Spain has recently discovered 20.5 billion euros in hidden non-performing loans, NPL’s rose to 92.224 billion euros recently, a rise of 12.7% year on year. NPL’s are bad loans that are either in default or close to default.

    It gets worse, Spain’s total stock of Bank bad loans rose to 187.8 billion euros.

    Many of these bad property loans/debts are off the individual banks’ balance sheets as they are in the Sareb Bad Bank.

    As usual with Spanish finances and their so called ‘official’ line of ‘rosy this and that’, it’s all smoke and mirrors, they hide the true picture including Rajoy and Co’s dealings!

HAVE YOUR SAY...