The Sub- Governor of Bank of Spain, Javier Ariztegui launched a new message of optimism about the economic crisis and the future recovery, which, said organism thinks to be for the second half of 2010. Despite this, Ariztegui said yesterday at a conference organized by financial agents in Santander, that the worst of this crisis, 'at least in the financial markets' has passed and the system' has not collapsed”.
Emilio Botin, stood before shareholders a similar argument: 'I have a very strong impression that we've probably already seen the worst of this financial crisis”.
On the contrary, former President of the Spanish Government, José María Aznar, stated that thinking of 'green shoots' in
Spain - taking into account the forecasts of rising unemployment, is' doing ridicule '.
Bank of Spain recognizes that "problems remain, but the indicators are clearly better”. In his first public speech after entering his current position three months ago, Ariztegui also said that a hopeful message can be sent, and it is that there will be no deepens in the economic downturn. Along with the improvement in the markets, referred to him, he mentioned indicators of feeling or perception, as well as the actual show that the process of economic decline is slowing, and although data are still negative, they are not in “dramatic and systematic” fall anymore.
He added that “The perception of financial markets is' clearly better ', with the stock-market going up and the disappearance of the extreme volatility that was installed in this market between the outbreak of the sub prime crisis in August 2007 and late last year.
In any case, Ariztegui reminded that the situation remains difficult and complicated, hence the "schizophrenia of positive and negative data”·. The number two of the Bank of Spain recalled that only six months ago, the reality was "deeply depressed" as not having a single positive data. Crisis remaining or not, there are many of their invoices still to be paid.
One of those invoices is the restructuring of the Spanish banking system. Botin also expressed in Santander that it is imperative that entities receiving public assistance - in the rescue plan being prepared by the government- to restructure and reorganize', though not necessarily through a merger.
Ariztegui acknowledged that the Bank of Spain 'in some cases has fallen short and others have passed' with the regulation of banking charges for late payment provisions. This topic is under review, but the adjustment to be made will keep the “conservative and prudent” profile of the supervisor. Ariztegui described the expansion of Banks and saving banks as excessive and therefore this expansion needs to be adapted to the present situation.
La Vanguardia, 20-06-2009
Free translation by Maria de Castro
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