Economy

Spain wants to nationalise banks



Deep in debt Spain wants to try with all power to avoid help from the EU-rescue display screen. Now in train of that threatened banks should be nationalised. Minister for Economic Affairs Elena Salgado informed on Monday that the credit institutes who cannot fulfil the new company capital requirements are partially nationalised. With this step Spain would like to stabilise the financial system of the country and strengthen the trust of the investors.

The new company capital requirements say that every bank must dispose in future of a company capital rate of at least eight percent, up to now this value lay at six percent. The banks who are not noted on the stock exchange must be able to show an even higher rate.

The government assumes from the fact that maximum 20 milliard euros are needed for the groggy banks. Some experts, nevertheless, estimated that one would need even more than 100 milliard euros.

The Spanish banks have accumulated in the years from 2007 to 2010 respected 92 milliard euros of loss. Particularly the savings banks of the country are since him burst to a real estate bubble strongly grievedly. About the national rescue ground FROB one already pumps more than eleven milliard euros into the sector without solving the problem really. The central bank of the country had expressed already in 2010 that a consolidation of the savings bank sector could become necessary.

Meanwhile, the rating agency Moody’s informed on Monday that one believes that a reform could affect in the Spanish banking sector positively the credit rating of the country, as well as the perception of the country in the markets. One believes, could escape Spain the destiny of Ireland which had to flee because of the slope in her banking sector under the EU-rescue display screen.

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