PHOTO GALLERY: Military funeral for the 31 Egyptian soldiers killed in Sinai    Amnesty calls for release of activists on trial under Protest Law    Tunisian holding parliamentary elections amid security concerns    Government jeopardising EGPC finances: Petroleum ministry source    Investment ministry in EGP32bn asset-debt swap with National Bank of Egypt, Banque Misr    Rafah crossing closed indefinitely after deadly Sinai attacks    Iran executes woman for killing of alleged sexual attacker    Palestinian-American shot dead in the West Bank    Egyptian Life Takaful Plans Bancassurance Activities with ADIB Next Month    Egyptian GDRs in London Close Mostly Stable on Friday, CIB Solely Up    BNP Paribas Wealth Management wins private bank awards for Europe, North Asia    EU allocates €4.7m for mine clearance in Egypt    Sisi says foreign hands behind Friday Sinai attack; vows action    Live score: Zamalek vs. Smouha (Egypt's Premier League)    Tennis: Williams beats Wozniacki in three-set thriller    Egypt Stocks Gain EGP9.3bn in Week on Moody's Rating Upgrade    BREAKING: Egyptian Policeman Injured in North Sinai Shooting Saturday Morning    USAID Tamped down Internal Criticism over Egypt Work: Report    Unidentified assailants set fire to municipal garage in Nile Delta's Kafr El-Dawwar    Real Madrid v Barcelona (Spain's La Liga 'Clasico'): LIVE    Two U.S. States To Quarantine Health Workers Returning From Ebola Zones    Coal Mine Accident In Far West China Kills 16: Xinhua    Brazil Presidential Campaign Ends In Slugfest Over Corruption    US Condemns Terrorist Attack in Egypt's Sinai    Katy Perry Cancels 30th Birthday Bash in Egypt amid "Safety Concerns"    Egypt's Police Says Brotherhood Torched Saudi Consulate Cars    UK rejects 'appalling' EU demand for more money    Russia's Putin accuses U.S. of damaging world order    WHO expects around 200,000 Ebola vaccine doses by mid-2015    Syrian Kurd leader sees war of "attrition" in Kobani    Al-Azhar students, faculty to be expelled for protests: Presidential decree    Lebanon's Marcel Khalife honoured at Al-Ahram: VIDEO    Palestine's Mohamed Assaf wins 'Best Middle East Act' at MTV EMA    Egypt regulator pins bond market hopes on central bank    Ajnad Misr claims responsibility for university blast    Egypt up 23 places in FIFA ranking    Some U.S. Hospitals Weigh Withholding Care To Ebola Patients    'Universities are for learning not throwing Molotov cocktails': Egypt PM    "Collective Panic" Not "Rotten Milk" May Have Rushed Suez Students To Hospital: Health Ministry Source    Egypt's police to train African security personnel    Trayvon Martin inspires gallery display in Zamalek    Royal Museum of Jewellery reopens for first time since 25 January Revolution    Seven-Goal Bayern Tear Sorry Roma Apart In Champions League    Art Alert: Kremer to play on Stradivari violin in Egypt    Tanta receives 3 million visitors participating in Moulid Al-Sayed Al-Badawy festival    Italy-Egypt Partnership Growing, From Culture To Business    VIDEO: Egypt overcome stubborn Botswana again    Zamalek hire Portuguese Pacheco as manager    







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.