Bahrain says ready to commit ground forces to Syria    Egypt in International Media    Quake fells Taiwan apartment building, at least five dead    Bridging the gap    Roma's other Egyptian    Earth, Wind & Fire founder 'Shining Star' Maurice White dies at 74    In Pictures: Taxi drivers protest against ‘private cab'    U.S. job growth slows, unemployment rate at eight-year low    MB founder Al-Banna's dies on Friday    Multi-tasking no problem for Man City-bound Guardiola    Gradual decline in temperatures across Egypt starting Friday    UN police base under attack in Mali's Timbuktu: UN    Egypt's Environment Min. seeks to boost cooperation with Congo    MB supporters illegally protest in Sharqia    Tonga declares Zika epidemic after 5 confirmed cases    Liverpool fans plan walkout protest over ticket prices    World powers pledge $11B in aid for Syria as thousands flee bombardments    Prosecution imprisons 2 MBs pending investigation    Leicester, Manchester City face off in top-of-table Premier League clash    Italy to send 130 military personnel to Iraq to recover wounded    Mired in problems, Egypt's president reaches out to Ultras    Crude oil prices steady in thin Asian trading ahead of Lunar New Year    Egypt in the international media    Al-Sisi condoles with Italian PM over death of Italian student    NTC to hold seminar over Russian novel translated into Arabic    Italy summons Egyptian ambassador over death of Italian student in Cairo    Egypt's stocks close the week up    On World Cancer Day, WHO publishes advice on reducing cancer deaths    U.N. halts Syria talks as government closes in on Aleppo    Dollar loses 10-12 piasters in Egypt's black market    Oil prices extend gains on dollar-slide, talk of oil producer meeting    Joe Alaskey, voice of Bugs Bunny and Daffy Duck, dies at 63    Italy eyes energy projects in Egypt    They are fooling you, Mr President    Citizen X speaks to Al-Sisi    Egyptian TV host El-Beheiry to serve 1-year sentence after denying appeal    One body of 12 missing Egyptian fishermen retrieved    Egypt to finish technical report on Ethiopian dam this week    Salah ends his 3-month goalless streak    Signs of torture found on Body of Italian student: Security officials    Egypt overturns death sentences for 149 Muslim Brotherhood supporters    Italian student missing in Egypt likely dead: Italian FM    Health ministry warns Egyptian pregnant women against travelling to S. America    EgyptAir becomes official carrier for Heliopolis Sporting Club    Art Alert: El-Leila El-Kebira puppet show to be performed at Cairo book fair    Proverb of the day: If it weren't for the variety in people's taste, goods will not get sold لولا اختلاف النظر لبارت السلع    Cairo's Saturday walks highlight the capital's hidden gems    Amazon plans to open up to 400 bookstores, says mall operator    







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.