Latest update from Spain Economy Minister, Spain announced another round of financial sector reforms Friday as
the government seeks to restore confidence in banks hurt by the housing
bust. Spanish banks will be required to boost provisions by €30
billion for real estate loans previously considered "non-problematic,"
Economy Minister Luis de Guindos told reporters. Is it new sub prime mortgage made by Spain economic??? let see...
The
measures are in addition to rules issued last February, which required
the banks to set aside about €50 billion for "problematic" real estate
loans that were non-performing., Madrid also announced plans to hire two independent auditors to assess the value of bank real estate assets. Banks
will be forced to "relocate" foreclosed real estate assets into an
independently managed company before Dec. 31, according to documents
posted on the Spanish government's website.
On previously news, Spain has already undertaken several attempts to clean up the
financial sector under previous administrations. But many analysts say
it will take hundreds of billions of euros to fix the problem once and
for all. That will prove challenging because the Spanish
government has already warned that its budget deficit will be larger
than expected this year.
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