The Latest Spanish Property News from Kyero.com

Sterling wobbles after hitting seven-month trade-weighted high. Bundesbank's Weber sees no room for further euro rate cuts.

This week, the Spanish government approved almost €100B in funding to prop up their banking system - should it be necessary.

Spain's government approved the creation of the Fund for Ordered Bank Restructuring (FROB) to ward off possible systemic risk.

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.

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.

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

The pound managed to add a cent over the week but made heavy weather of it. Having risen to €1.1850 on Tuesday it was down almost to €1.16 by Thursday. It recovered quite easily and when London opened this morning it was back up to €1.1850.

This week, the IMF is counselling prudence and continued financial vigilance because it, unlike the Spanish PM, believes that the global economy is a long way from recovery.

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.

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

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.

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.

Strong performance by Sterling - UK industrial production rises in April - G8 endorses dollar as reserve currency - Euroland industrial production continues to fall.

After last week's flurry of positivity, I was half-expecting to produce a newsletter from the flip-side this week - one full of doom and gloom. While there are some somber articles, yet again we find more reasons to be cheerful about Spain and its property market.

614,000 completed new homes left unsold, Analysts say number less than forecast, Another 627,000 still in construction

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.

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.

The Financial Times has just released a comprehensive 2009 special report about Spain, consisting of eighteen articles dealing with every aspect of the country.

The Tinsa House Price Index for May 2009 is available to download - and it makes for encouraging reading

Sterling hit by charts and politics: Technical resistance and Downing Street unrest took their toll on sterling despite decent economic data. The euro advanced by default rather than by design.

This week's Spanish property news could almost pass for pure unbridled optimism.

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.

Cajasur on Friday said it had held informal merger talks with Unicaja and Caja de Murcia, marking the latest attempt by Spanish savings banks to join forces to confront a rapid rise in property debt defaults.

Spanish consumer confidence rose to a 13-month high in May as jobless claims eased, though Spaniards' spirits remained depressed by historical standards.

May jobless claims fall 24,741, first decline in 14 mths, Joblessness down in all sectors, govt sees end of crisis, Govt says 8 bln euro public works plan slows jobs decline, Govt does not rule out extra stimulus spending

News that thousands of homes owned by Britons on the Costa del Sol will not be demolished, despite being declared illegal, should help to stimulate the moribund property market in Spain.

This week, the news centred on the state of the Spanish economy with an interesting perspective from a Socialist publication which helpfully asserts that the crisis "cannot be solved in the interests of the ruling elite without an unprecedented destruction of industry, employment and wages."

Spanish govt says economic problems to continue in 2010 - Unemployment, structural weakness, biggest obstacles - Treasury Secretary Ocana sees need for Labour reform - Econ Min Salgado does not rule out tax hikes for wealthy

Unemployment will not hit 5 million this year - Rules out making it cheaper to hire and fire - Says no bank rescue fund should be ready before summer

Is any property below €50,000 a cheap Spanish property? Are cheap Spanish properties only to be found at auction or as bank repossessions? How much below market value does a Spanish property need to be to be considered cheap?