Families in Al-Arish echo outrage on police operations against perpetrators of recent attacks    Head of Lawyers Syndicate intends to appeal suspension of "Coptic Minya woman" case    4 Egyptian squash players reach J.P. Morgan Tournament of Champions 2017 quarterfinals    FC Sevilla ends Real Madrid FC lucky streak    Government to send church victims to be treated in Germany    Neither the people nor the state are allowed to let go of Egyptian land: State Council    Al-Sisi highlights measures to stimulate investment during opening of Egyptian-Belarusian Business Forum    Zohr, Atul, North Alexandria fields to start production this year: Petroleum Ministry    Middle East turmoil a result of unsolved Palestinian-Israeli conflict: Shoukry    Flotation necessary to tackle economic problems: Al-Sisi    Angelique Kerber battles her way through first round of Australian Open    Belarus president, heads of 40 companies visit Egypt for investment    Egypt's problem    After extensive struggles, new investment law emerges to regulate rhythm of Egypt's economy    Egyptian ministry issues first book adressing 'renewal of religious discourse'    Egyptian NGO calls for death penalty in terrorism crimes    2 ISIS members arrested in Egypt before heading to Syria    Egyptian 'Single Mother' stirs controversy    Pharmacists Syndicate postpones partial strike after call from presidency    Sisi: Combating terrorism global responsibility    Air France launches Boeing 787 flights to Cairo    French ‘Eric La Garenne' performed in Egypt Opera House    11/11 protesters receive 2-year prison sentences    Macedonian President welcomes Egyptian investments in his country    Trump Secretary of State pick compares Muslim Brothers to Al-Qaeda    Terrorism's toll    Mahrez the best    Pharaohs' net title    Egypt's 11    MPs want Al-Baradei stripped of nationality    Newsreel    Editorial: Arab alliances and action    Reasons for optimism?    Zesty chicken in creamy mustard sauce    Getting back on track    A Christmas message to the terrorists    Want a car... these days?    MUSIC AND DANCE    Mistress of the Cairo Museum    The godmother    Parliament speaker praises Ireland's stances towards Egypt    Egypt:Court upholds asset freeze of 3 activists illegally obtained foreign funds    Swedish archaeologists discover 12 ancient Egyptian cemeteries near Aswan    160 commissions take stock of Egyptian artefacts in museums: head of museum department    Dalida film to be screened in Bahrain    Mawlana: our fragmented piety    CAF faces legal kicking in Egypt over international football TV rights deal    6 gold, 6 silver medals for Egypt at the British Junior Squash    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Spain creates 'bad bank' for toxic property assets
Published in Arab News Agency on 31 - 08 - 2012


Spain economy minister
The Spanish government is creating a "bad bank" into which all the toxic property assets of its debt-laden banking sector can be off-loaded.
The move is aimed at helping the country's troubled banks draw a line under the debt crisis and move on.
The Bank of Spain will assess the value of the assets being transferred into the "banco malo" and the banks will receive cash, debt or shares in return, said economy minister Luis de Guindos.
The bad bank could last 10 to 15 years.
The "rotten assets" being off-loaded must have a value that allows the bad bank to make a profit in the long-term, said Mr de Guindos after a cabinet meeting.
In June, Spain requested 100bn euros ($122bn; £79bn) of loans from the European Financial Stability Facility bailout fund to help support its banks, which are struggling with bad debts from loans made in the property sector.
The value of bank loans at risk of not being repaid is estimated to be 156bn euros.
But Spain's eurozone partners have said any bail-out loans must be accompanied by economic reforms, including the establishment of the bad bank.
In July, Madrid announced additional spending cuts and tax rises worth 65bn euros.
But the government is still struggling with high borrowing costs and a flatlining economy mired in a double-dip recession.
On 29 August, the debt-laden region of Catalonia asked the government for a bailout of 5bn euros.
The following day the region of Valencia asked for 4.5bn euros, more than had been expected.
Meanwhile, unemployment in the country is running at nearly 25%, the highest in the European Union.
Speculation remains that, despite the Spanish government's efforts, the country may still require a full sovereign bail-out.


Clic here to read the story from its source.