Legal tip 628. Spanish Banks can cover losses of developers
Thursday, November 3, 2011 @ 11:35 AM
Ordonez, governor of Bank of Spain, states Banks can cover losses of developers.
The good new is that it is not just the spanish Ordoñez but also the European Banking Authority (EBA) who back that the Spanish financial sector has provisions for real estate risks of approximately 55,000 million of Euros, including the anti-crisis savings.
The mainstays of the system are healthy. There are problems with some finantial entities which are identified, limited and manageable.
The report of Bank of Spain focuses again on real estate exposure. Sovereign risk is not the enemy to fight in Spain. PP shares this vision.
It is the same vision Paul de Grauwe had bak in 1998 before the Euro was coming in ( you can read his wise, kind of prophetic announcement here)
At least, we know what the illness is and can find the right treatment, this is another good new.
See you in Spain,
Maria
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"Vista de Coin Cuesta La Reina", Malaga, Spain, by Miradas de Andalucía, at flickr.com