Denial stops in Spain as banks finally ask for monedas
No, no, no, but eventually after years of denial it was a YES. Spain is slowly realizing the banks need more capital. The problem is though, Spain will most probably be coming back for much more. With the “fantasy” valuations of unsold properties, the balance sheets will be needing more boosting later. Let’s see what happens to Spain’s, 92 billion Euros, part of the mighty EFSF. From El Pais.
Economy Minister Luis de Guindos announced Saturday evening that the government intends to ask for a European bailout to recapitalize Spain’s banking sector. The package will total 100 billion euros.
He added that the amount of the rescue package would be “sufficient” to meet the needs of the banking sector as identified by the audits being carried out by two independent appraisers and the estimates of the IMF, plus “a significant margin.”
As the financial assistance as defined by De Guindos will be to attend to the needs of the banking sector, the conditions that will be imposed for its disbursement will be linked exclusively to the specific loan to the financial sector.
The loan will be received under “very favourable conditions.”
More reading on the Spanish bail out via