European Council Declares Spanish Banks Need no Aid

Spain’s banks do not at present need further European aid, according to a document prepared by the European Commission and the European Central Bank and seen by Reuters on Friday.

Spanish lenders, hit hard by a five year on-off recession and burst property bubble, have received financial aid from Europe of 41.3 billion euros of a potential line of up to 100 billion euros.

“There is at present no reason to foresee further program disbursements,” the report said. The aid was used for the recapitalization of state-aided banks and a capital injection into a so-called bad bank that took on bad loans and devalued property assets from the financial system.

The report, which also involved experts from the International Monitory Fund as an independent monitor, said ensuring bank profitability represents a major challenge given low interest rates and rising bad debts.

via Reuters

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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
Alfonso Esparza

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