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Spain Avoids Large-Scale Financial Bailout From EU

Published on 4/12/2011 in Investing in Spanish Property

Right after considerable speculation on the fate of its debt-ridden economy, it looks as though Spain could keep away from searching for a large-scale financial bailout from the EU - an expression of confidence in its recuperation which bodes well for property investors.

Even with speculation since last fall which its debts were unsustainable and there was no various hope for the floundering nation but to seek out EU rescue, Spain has stood sturdy whilst each Ireland and Portugal fell client to credit card debt crises, and now looks to be from the woods. France money minister Christine LaGarde, one of the key Eu authorities at the centre of EU crisis negotations, informed the Wall Street Journal which "Spain isn't a problem", while German Financial Minister explained which as far as the credit card debt crisis in Spain was concerned, "the chance of contagion has lessened."

EU bailout for Spain Contrary to Portugal and Ireland, that saw severe general public opposition to nationwide spending cuts and faced problem receiving them in parliament, Spain has effectively used a drastic credit card debt reduction program and has currently cut its budget deficit to 9% from 11% in 2009, though unemployment remains constant high. As a end result, borrowing prices for the country stay at a unwavering level, and investors appear to be renewing their courage in Spain and returning to the market.

"Traders more and more have arrive to distinguish separating [Ireland and Portugal] and Spain", economist Antonio Garcia Pascual, of Barclays Cash, informed the Wall Street Journal. Credit rankings agency Fitch also noted last 30 days which it considers an Ireland-style finish cave in of the banking and property sector to be "an intense scenario that is not likely to materialize."

With property gross sales having noted a positive development of 5.9% last year for the first time because the market downturn, and new improvements having all but ceased, permitting residence provide to be wet up in relation to demand, it looks as though the Spanish economy and real estate market is starting its slow road to recuperation. Supplying it can stay in investors' great publications in the arriving months, the long term is wanting more and more bright.

Written by: Dan Johnson

About the author:

TheMoveChannel.com is an overseas property search portal, offering real estate for sale in all the major international destinations, as well as a worldwide website directory, daily news, advice guides, financial products, property services and much more.

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Comments:

the predictor said:
Wednesday, April 20, 2011 @ 4:22 AM

Cerrado...PIIGS...EURO...€
Portugal
Italy
Ireland
Greace
Spain...(only had sun of valuation...before...Costa del frio now...weather changed...3 mill empty properties...still only 40% unemployed)...no turn around...manana...50 years behind...north...sorry to say)
gambio your money (€)...to REAL in cash...invest in future...Brazil...property will stall further...there...

Christopher Gamble said:
Monday, April 18, 2011 @ 4:58 PM

I reiiterate above comments...you woud say that wouldn't you!
for one Barclays can not be relied upon as a solid source of information in Spain as their performance is so bad that 100 branxches at least will be closing down and there's a reasonable chance the brand will be pulled from Spain other than the Barclays Wealth Division.
Its just so shallow and mercenary too make such bold and irresponsible uninformerd predictions on a day that Zapatero has gone to China, cap in hand!
When it comes to the uncertaintly of economic stability on such a huge scale that already the British Treasury has declared it wants no part of any further Eurozone bailouts then one should tread with caution at least until we know the outcome of the Portugal situation and the effect of junk staus of Ireland Banks.
It is clear to any observer with even a slight amount of interest that Spanish Banks are staggeringly over exposed to sub-prime debt of their own making. Wait and see is the only sensible action at present unlessthere are other buying criteria ahich can often be the case....

molly farr said:
Thursday, April 14, 2011 @ 2:27 AM

still living in Spain
ten years
im loving it

who would go back to England

remember why you left

and now its worse
is that possible

norman said:
Wednesday, April 13, 2011 @ 1:59 PM

The article conntains only predictions and hear say.No evidence what so ever.
The EU is done for.Its only a matter of time.Any one wanting to buy in spain I would advise to wait.When spain returns to the peseta.The spanish euro will be exchanged at what ever the corupt govrnment ,who happens to be in power at the time will give you.I,ll let you decide whether you will get a good exchange?
The nation of spain will then be worth only what they produce which is not what they have been earning in the last 10 years with the help of the other mug countries ie England, Germany.Thus the peseta will be worth what it will be worth.My bet is that it will be worth around Half a quid,as it used to be.Wait definately wait.I love spain but you,ve got to be real.Engand has hooligans as any spaniard will tell you Germans are machines and the spanish are lazy.

Sanchez1 said:
Wednesday, April 13, 2011 @ 1:41 PM

Greece said they wouldn't need a bailout. Ireland said it wouldn't need a bailout. Then Portugal said it wouldn't need a bailout. Spain has said it doesn't need a bailout. I think there is a pattern emerging here ;-)

Once the markets suss out how much overvalued rubbish is on Spanish banks' balance sheet, Spain is in real trouble.

bruno said:
Wednesday, April 13, 2011 @ 12:01 PM

It seems people on here are always so negative, whether that comes from bad experiences or whether the posters are natural moaners I don't know, but there is no point belittling positive reports simply because they do not appeal to your sense of perceived doom!

No job no money had to leave spain said:
Wednesday, April 13, 2011 @ 10:18 AM

Well said, Here in Spain. After 7 years we have left and are still getting over the battering of living in Spain. Yes its hot, but if you ask most expats. If it wasnt sunny they wouldnt be there. Spain is a hard hard place to live whether you speak the right version of spanish for your area or not. Its a shame and I didnt intend to feel like this in fact I tried for a long time not to but eventually Spain has beaten me and I can see the smile on its face.

Here in Spain said:
Wednesday, April 13, 2011 @ 9:58 AM

I´m 34 years old and married to a Spanish man. We have two small children and things here aren´t great. There is no work, or if you are lucky enough to have a job you might not get paid on time or your full pay. Most people have temporary contracts which means that tomorrow could be your last day. There is no child benefit, tax credits or job seekers benefits to live on. People are stealing any metal which isn´t virtually welded down to sell as scrap - just visit any scrap metal merchant and see the Endesa covers etc. There are hundreds of Morrocan, African, Romanian immigrants and prostitution seems to be the main boom business.

Our main saving grace is that we have a flat in the old part of town. A 40 year old block which was built well on one of the best streets in town. Other Brits we know bought shiny new flats on the outskirts and have endless problems with their buildings, community problems and dodgy neighbours...

So, Spain is a lovely country but it´s got a long, long way to go. If you buy now don´t buy until you´ve rented and had a real look at what is out there!!!! For example, looking at estate agents info flats here (Cuevas del Almanzora) are priced at 110,000 ish..... but in reality Spanish buyers are buying for less than 50,000!! In my block there is a 3 bedroom flat for 45,000euros. Buyers be very, very careful...check out the area morning, noon and night before you part with your money. Rent first and speak to locals (look for Se Vende and a mobile number) rather than agents or even banks as they are trying to offload their own expensive promotions.

I like, note changed from years ago love, Spain. Let´s hope for all our sakes that things pick up for our childrens future here.

midasgold said:
Wednesday, April 13, 2011 @ 2:04 AM

The economy is shot (youth unemployment 40% ) Dream on Dan, it will take years before any recovery.

Mark Foreman said:
Wednesday, April 13, 2011 @ 1:39 AM

Real problems still exist when the shares in the major spanish companies are at their lowest levels and they are!

All the major bank shares (excluding santandar) are down 30-40% and the country's largest developer that also owned canary wharf (Metrovacesa) shares are now worth about 8% of what they were three years ago. Yes 100 euros is now worth between 5 to 8 euros.

Therefore Spain will take 5 years more to get back where it was 5 years ago...

Phil Blinston said:
Wednesday, April 13, 2011 @ 1:21 AM

I'm looking to buy a Property in the Costa Dell Sol at some stage in the next year or so. Spain may be scewed, but it's pretty damm warm, and not freezing in the winter and wet in the summer like England. Get in :)

james Ross said:
Wednesday, April 13, 2011 @ 12:40 AM

Of course you would say that as you are a company trying to sell property in Spain.
Lets face it Spain is screwed and will be for a very long time. The bubble has burst , there is virtually no production in Spain.It is an economy fronted by smoke and mirrors.

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Spain Avoids Large-Scale Financial Bailout From EU

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