Spain is back
The independent audit carried out by consultant Oliver Wyman estimates the Spanish banking sector needs additional capital of 53.745 billion euros to shore up balance sheets because of its exposure to the ailing real estate sector if the consolidation currently taking place among lenders is taken into account, the Bank of Spain said Friday.
The central bank says that without taking into account merger and acquisition processes that are under way and deferred taxes, the figure amounts to 59.3 billion euros, very close to the initial estimate in June by Oliver Wyman of 60 billion euros.
The government has been granted a loan of up to 100 billion euros from its European partners to bail out the sector. The administration is hopeful that some of the banks that need more capital will be able to raise funds privately, reducing the final amount required to 40 billion euros. The consultant carried out stress tests on the country’s 14 main lenders that account for 90 percent of the Spanish banking sector’s assets under different adverse scenarios. (Full article here. )
But that’s not all, remember, the Catalans are furious.
Via the Telegraph.
It is wealthy, industrial, and sees itself as the regional engine for growth. It is also fed up with paying for its poorer neighbours.
It is not Germany, but Catalonia. And the Spanish region’s politicians certainly don’t mind the comparison.
“An economist just this morning told me that he saw Catalonia as being to Spain what Germany is to Europe,” said Joan Vidal, chief of staff for the president of Spain’s most economically powerful region. “That shows that we have our own image, while Brand Spain is really suffering.
“Of course, things have been done here that shouldn’t have been – we’re not denying that. But if we had the mechanisms to develop ourselves, we think we could get out of this situation.” (full story here).