An independent audit carried out by consultant Oliver Wyman estimates the Spanish banking sector requires additional capital of 53.745 billion euros to prop up their balance sheets, mainly due to their exposure in the ailing real estate sector. This was announced by the Bank of Spain on Friday.
Behind the scenes talks about bailout
It is being reported that the EU authorities are working behind the scenes to pave the way for a new Spanish rescue program, with unlimited bond buying by the European Central Bank, by helping Madrid craft an economic reform program that will be unveiled next Thursday.
Prime Minister says no decision taken yet on possible bailout
Prime Minister Mariano Rajoy has stated that no decision has been made yet as to whether (or when) Spain will request a bailout, adding that he will not accept outside conditions should the situation arise.
Andalucia does not rule out applying for financial assistance
Responding to questions from reporters in Huelva following Cataluña’s decision to request a bailout, the Minister of the Presidency and Equality of the Junta de Andalucia, Susana Díaz, said that Andalucia ‘does not rule out the possibility of making use of the Autonomous Liquidity Fund (FLA).
Spanish bail-out ‘impossible’ according to some experts
A study by Open Europe, a leading think-tank, has warned that the current bank rescue plan in Spain is clearly insufficient, while a full bail-out – which would require around €650 billion – is impossible.
Spain to get €30 billion in July
Eurozone finance ministers have agreed to lend Spain €30 billion euros this month to help its troubled banks, the first instalment of the no strings attached Victory for the Euro package/bailout with more strings than an octopus marionette. A total bailout amount of up to €100 billion euros was agreed in June.
Spanish banks to be bailed out
Spain is to get up to 100 billion in loans from eurozone funds to try to help shore up its ailing banks after finally succumbing to the inevitable and asking for a bailout.
Bankia needs €19 billion bailout
Bankia, the fourth largest bank in Spain, requires a €19 billion bailout after figures for 2011 show a loss of €2.89 billion rather that the €309 million profit reported in February.
They couldn’t hold out forever
They couldn’t remain in denial forever. Ireland is expected to request an EU and IMF (known as The Bailout Boys) bailout package of up to €100 billion on Monday and is preparing to unveil a four year programme of steep tax rises and deep spending cuts.
The rumour machine
Rumours abound that Spain is on the verge of requesting a ‘bailout’ and it would be more than double the amount requested by Greece.