An account worth at least 50 billion euros. This is what Spanish banks will need to cover bad debts. The estimates are from the government of Mariano Rajoy and are reported by the Financial Times which cites an interview with the new Economy Minister Luis De Guindos. The new center-right government, De Guindos pointed out, would then be oriented towards a further consolidation of the banks with savings banks at the center rather than the creation of a bad bank on the Irish model into which the riskiest assets would flow. Fears about the need for new resources that triggered sales on the sector. Santander loses 3,87% and BBVA 4,52%. Without forgetting that the Spanish need around 26 billion in total according to the dictates of the EBA.
Yesterday the government spokesman, Carmen Martinez Castro, denied the rumors about the search for loans from the European bailout fund and the IMF to help the banks. Fears that however have increased the tension on the spread between the Bonos and the bund which today rose above 360 basis points.
On the other hand, by now the circle also seems to be closing in on Spain, which seemed to do much better than Italy in the past months thanks to the firm decision to go to elections. But the new government eventually had to deal with a deficit/GDP higher than expected, to 8% from 6% forcing Rajoy to launch new extraordinary austerity measures. A plan that will also involve the autonomous regions. Again at the Financial Times, Economy Minister De Guindos announced his intention to approve a law in March establishing preventive government control over the budgets of the regions, to curb the deficit of the autonomous communities. On the banking front, the executive is discussing the intention to request a report from the Bank of Spain on the salaries of managers of banks and savings banks who have received aid from the state. The Madrid Stock Exchange drops 2,71%.
