Archives for June 2009

June 30th, 2009

Spain's government approved the creation of the Fund for Ordered Bank Restructuring (FROB) to ward off possible systemic risk. Here are the main details of the fund and Spain's banking system: -The fund will have initial capital of 9 billion euros -Of this, 2.25 billion euros will come from the privately-run Deposit Guarantee ...

Continue reading Spain: Fund for Ordered Bank Restructuring

June 29th, 2009

A €99 billion bailout fund for healthy as well as struggling Spanish financial institutions is to be approved by the Spanish Cabinet at one of its regular meetings. Cadena Ser radio, which cited a copy of the proposal, said that banks without capital shortages may have access to the fund if ...

Continue reading Spanish Banks Gain €99B Support

June 26th, 2009

House prices will stabilise in the last quarter of this year as the low number of homes for sale more than compensates for the fact that houses still aren't affordable, forecasts Standard & Poor's. 'UK house prices will stabilize in the final quarter of this year about 7% lower than in ...

Continue reading S&P: House Price Forecasts

June 25th, 2009

Treasury secretary: will review all taxes for 2010 budget - Labour minister sees new benefit payment deal before Aug - Govt to cut emergency spending to pay for new measure - ECB's Trichet says Spain needs labour reform Spain will review all taxes for the 2010 budget as it confronts a ...

Continue reading Spain: Tax Increases to Boost Unemployment Benefits

June 23rd, 2009

Spain will decide whether to hike income tax for high earners and reduce tax breaks in 2010 after the summer, Economy Minister Elena Salgado said in an interview on Sunday. 'In September we will have better information and that will be the moment to take decisions,' Salgado said in an interview ...

Continue reading Spain Considers 2010 Tax Changes

June 22nd, 2009

Spanish PM says worst of crisis over, economy recovering - PM sees return to growth in 2010 - PM defends tax hikes after Bank of Spain criticism - Opposition says voters deceived by talk of green shoots Spanish Prime Minister Jose Luis Rodriguez Zapatero on Wednesday said Spain should return to ...

Continue reading Spanish PM: The Worst is Over

June 19th, 2009

The governor of the Bank of Spain bluntly told the government there was no room for deficit spending beyond the plans already announced to try to revive the economy. In his sternest policy warning since the economic crisis began last year, Miguel Angel Fernández Ordóñez said Spain’s budget deficit could reach ...

Continue reading Bank of Spain: A Drastic Change of Outlook

June 18th, 2009

The head of the International Monetary Fund has dismissed reports of an economic recovery, warning that the worst of the slump is yet to come. Dominique Strauss-Kahn, managing director of the IMF, has told politicians that recent more optimistic messages on the economy may have come too soon. He told policymakers to ...

Continue reading IMF: Hold Your Optimistic Horses

June 16th, 2009

614,000 completed new homes left unsold, Analysts say number less than forecast, Another 627,000 still in construction Spain had 614,000 new homes sitting unsold at the end of 2008 -- lower than most analysts' estimates -- according to the first major survey of Europe's most over-stocked home market. Almost half of those ...

Continue reading Spanish Property Overhang Shrinks

June 15th, 2009

Spanish financial institutions, which have with one exception ridden out the global economic storm intact, are bracing for a difficult summer and will soon be offered aid from a multi-billion euro rescue fund hurriedly being assembled by the government. With every passing week, more Spanish ministers, bankers and analysts accept that ...

Continue reading Changing Landscape of Spanish Banking

June 12th, 2009

Spanish CPI -0.9 pct yr/yr in May, new 57-yr low - Core inflation falls to 0.9 pct, raises deflation fears - Gov't sees risk of negative inflation until end of autumn. Spanish consumer prices fell by a record 0.9 percent in May, deepening a three-month decline and raising the risk of ...

Continue reading Spanish Prices Fall, Risking Deflation

June 11th, 2009

The Financial Times has just released a comprehensive 2009 special report about Spain, consisting of eighteen articles dealing with every aspect of the country. You can download it as a pdf file or visit the FT.com web site to read the individual articles. We'll be reading and reviewing these over the next ...

Continue reading Spain: Financial Times Special Report

June 11th, 2009

The Tinsa House Price Index for May 2009 is available to download - and it makes for encouraging reading Last month's TINSA report fell a little flat because of the hope it would show that the decrease in house prices had reversed. Actually, both the March and April TINSA reports showed that ...

Continue reading TINSA House Price Index May 2009

June 9th, 2009

This week's Spanish property news could almost pass for pure unbridled optimism. Good news for the innocent buyers of illegal property in Marbella. In Costa del Sol Bargains: Soon to be Legalised we learn that their properties will be legalised rather than demolished. Of course, the people who should be footing the ...

Continue reading Justified Optimism in Spain?

June 9th, 2009

There were a couple of interesting articles this week in the Spanish daily ‘El Mundo’ about bank repossessions in Spain, and what the 10 biggest lenders are offering investors. One article pointed that Spain’s banks and savings banks – known as cajas – are now the country’s biggest real estate companies. ...

Continue reading Spanish Banks: Property Repossession Top Ten