Articles tagged as: banking sector

February 28th, 2013

The Spanish Economy Minister, Luis de Guindos, has reiterated the Government's intention to cut taxes in 2014, combining efforts to reduce the deficit with measures to boost growth and get Spain out of recession. In an interview with Reuters earlier this week, De Guindos said that the Stability and Growth program ...

Continue reading Government to Lower Taxes in 2014, Says Economy Minister

February 11th, 2013

The European Commission and the European Central Bank (ECB) ruled last week that the financial reforms undertaken by Spain in exchange for the 40,000 billion euros bailout granted by the Eurogroup are maintaining a "good pace", but have called on the Government for "more progress" on fiscal consolidation and structural ...

Continue reading Brussels and ECB Call for “More Progress” on Fiscal Adjustment

October 25th, 2012

In a race to reduce their real estate portfolios, containing the bulk of their toxic assets, before the 'bad bank' starts operating in December, Spanish banks are boosting incentives for home purchases, offering discounts in some cases of over 50%. The phenomenon is not new and since the beginning of the ...

Continue reading Financial Institutions Rush to Sell Homes Ahead of ‘Bad Bank’

July 23rd, 2012

According to a study published on by JP Morgan, large private Spanish investors are the most optimistic in all of Europe about the future of the European Union. The study, based on 325 surveys, revealed that 92% of the Spanish participants considered that the eurozone will manage to avoid any defaults ...

Continue reading Spanish Investors Most Optimistic Over Future of Euro

July 18th, 2012

The General Workers’ Union (UGT) has complained that the restructuring of the savings banks will leave 4.8 million people with no bank branch in their area. The union estimates that 2,656 villages, which at present only have savings banks, will be left without any bank branches, which would mean financial ...

Continue reading Cajas Closures Will Leave 4.8 Million Spanish Without Local Branch

June 28th, 2012

The Heads of State and Government of the eurozone will discuss this Thursday and Friday, at the European Summit in Brussels, moving towards greater banking and fiscal integration in the monetary union, which will mean a loss of sovereignty of member states and greater budgetary control by the EU institutions. The ...

Continue reading EU Proposes Limiting Defaulting Countries’ Issuance of Debt

June 13th, 2012

The German Federal Minister of Finance, Wolfgang Schäuble, has announced that the European Union Commission (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB), will monitor the restructuring of the banking sector in Spain. "They will be responsible for monitoring the program precisely to ensure it is fulfilled," ...

Continue reading Spanish Banks Restructuring Under Scrutiny

June 12th, 2012

The credit rating agency, Fitch, has downgraded Spain’s rating three notches from A to BBB with a negative outlook, because of the fiscal cost needed to recapitalise its banking sector, the forecast worsening in its economic conditions, the increasing vulnerability of the country to contagion from the crisis, and the ...

Continue reading Fitch Lowers Spain Rating to BBB

September 9th, 2011

Despite the collapse of the housing sector, the decline in the profitability of Spanish debt and lack of credibility on the economy, the BBVA and Santander banks rank in the top four most creditworthy of the 50 largest banks in Europe. The author of the report is the credit rating ...

Continue reading BBVA and Santander Among the Most Creditworthy in Europe

April 29th, 2011

Spanish public deficit fell to 9.2% of GDP in 2010, while debt rose to 60.1% according to estimates released on Tuesday by Eurostat, which confirms deficit data announced by the Government of Spain. The published figures show an improvement in the deficit over the previous year, when it stood at 11.1%, ...

Continue reading Spanish Deficit Fell to 9.2% in 2010

April 25th, 2011

The infamous “ground clause” or "cláusula suelo" - a minimum interest rate that financial institutions applied to many mortgages in order to insulate themselves from possible declines in the Euribor - has caused loans taken before the crisis to increase, in some cases, from anywhere between 1,000 and 5,000 euros. During ...

Continue reading Getting Wise to the ‘Ground Clause’ – ‘Cláusula Suelo’ in English