Spanish Bad Bank will not get Investments says Banking Chief

The chairman of one of Spain’s healthiest banks, the Basque lender Kutxabank, has delivered a significant blow to the government’s chances of persuading private investors to take a stake in the country’s bad bank.

Mario Fernandez, one of Spain’s most senior bankers, said it was “unthinkable” that private investors would take a stake in the short term, adding to the skepticism voiced last month by BBVA chairman Francisco Gonzalez.

The government hopes that private investors will own at least 55 percent of the entity created as a condition to access 100 billion euros ($130 billion) of European aid for the sector.

“It seems to me that in the short-term, and I hope I’m wrong, that to even think about private capital is an unrealistic assumption unless the price is rock-bottom,” Fernandez said in an interview with newspaper Cinco Dias.

“In that case, it’s possible that some investors would make a three or four-year bet, after getting a good bargain that would bring some profit.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza