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
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
April 8th, 2011
Three years into Spain's economic crisis, the worst could still be to come for the country's ailing banks as they grapple with falling profits and rising bad debt, the central bank chief warned Tuesday. "2011 will be another year of adjustment, and for the banking sector, it will be one of ...
Continue reading Spanish Banks Face Difficult Year, Warns Bank Chief
March 25th, 2011
Moody’s, the credit rating agency, has downgraded the senior debt and deposit ratings of 30 Spanish banks following its downgrade of the Spanish credit rating two weeks ago. The multiple downgrades announced on Thursday also reflect the declining systemic importance of smaller lenders and regional institutions, which has led Moody’s to ...
Continue reading Spanish Banks Resilient Despite Moody's Downgrade
March 18th, 2011
Spanish house prices fell for the twelfth straight quarter in the final three months of 2010, but came close to break-even as the property market struggles to emerge from an extended slump. In the October to December period prices fell 0.1 percent quarter on quarter, national statistics institute INE said on ...
Continue reading Spanish Property Prices Slip for 12th Straight Quarter
March 4th, 2011
Spain met its 2010 budget deficit target, Finance Minister Elena Salgado announced Tuesday, as spending cuts by the central government in Madrid helped offset the missed targets of about half of the country’s regional governments. The budget deficit for last year was €98.2 billion, or $135.6 billion, amounting to 9.24 percent ...
Continue reading Spain Meets 2010 Budget Deficit Target
February 25th, 2011
Millions of Spaniards are trapped in debt, stuck with overpriced homes that are keeping household spending low, unemployment high and international investors nervous. The bursting of Spain's property bubble has left few winners bar those who have scooped up a bargain at forced auctions of luxury flats in deserted housing estates ...
Continue reading Spanish Property Crisis Traps Millions in Debt
February 9th, 2011
They are officially banks but they have become Spain's main real estate agents, according to data from the country's banking sector which reveals the extent of their risky property assets. The Bank of Spain had asked all 17 of the country's fragile regional savings banks, which account for about half of ...
Continue reading Spanish Banks Display Risky Appetite for Property
