Bill Gross: Fed tightening now could create self-inflicted instability    Saudi sinks after oil's plunge, Egypt also soft    3 migrants or refugees missing off Greek island found safe    Deaf mice cured with gene therapy    English clubs break spending record, Manchester City top spenders    Tennis: Djokovic to play Nadal in exhibition match in Thailand    Zico appeals to FIFA rivals for debate    Proverb of the day: The owl became a poet in the miserable years ام قويق عملت شاعرة في السنين الوعرة    Russian, Egyptian universities to train specialists for nuclear power plant in Egypt    Asian shares fall for third day on global growth concerns    IMF's Lagarde warns of spillover risks from recent volatility    Drilling in Egypt's Zohr gas field to start in January: Eni    UAE's Arabtec says no progress on Egypt housing project    Egypt's Sisi discusses cooperation, economic ties with Chinese counterpart    Northern Irish Unionists to ask PM Cameron to call 'intensive talks'    Beirut protesters must leave environment ministry: Interior min    373 Egyptians return from Libya through Salloum border crossing    Factory fire kills 1 in Egypt's Damietta    Apple explores move into original programming business - Variety    US Open 2015: Maria Sharapova pulls out injured in New York    Healthy workplace tied to fewer obese young workers    4-Dimensional Plan Announced To Tackle Assiut Oil Leak    Alleged Ansar Beit Al-Maqdis member killed in Cairo    Egypt increases efforts to acquire Security Council seat    Egypt parliamentary elections to start 17 October    BREAKING: Egypt parliamentary elections to start 17 October    Proverb of the day: He who is on dry land is a great swimmer اللي ع البر عوام    Egypt summons UK ambassador for slamming Al Jazeera trial    Egyptian police arrest death-sentenced former Islamist MP    ‘Devastated' Peter Greste urges Sisi to pardon Al-Jazeera trio    Free visits to all Egyptian archeological sites given to American child    Sisi embarks on a historic visit to Singapore    Changes in Iran    Political parties in disarray    Policemen back to work    Republican praise for Al-Sisi    Giant steps    The ‘Bulldozer' runs out of steam    Rewarded with an Olympics    Reaching out for the Russians    Yemen: The hard last mile    CINEMA    Kibbeh Seneya    MUSIC AND DANCE    The unique project of Gamal Al-Ghitany    Egyptian government cannot halt Semenkha statue sale: Antiquities minister    Proverb of the day: Your son will be as you raise him and your husband will be as you train him ابنك على ما تربيه وجوزك على ما تعوديه    Egypt's long-planned Grand Museum will be managed internationally – Minister    







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




Your friends recommend

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.