Jun 10, 2012 · jurdyr
what cover up , the bank in spain have been in troblem sine the down turn in the markets , Spain?s banks got into bad debt when the real estate bubble burst in 2008, after the previous property boom leading the banks to over lend, and many of those loans have no chance of being repaid.
Luis de Guindos gave a press conference on Saturday night to say he had accepted the rescue plan reached and said ?It is a loan in very favourable conditions, better than those of the market, and it will not leave the slightest glimmer of debt?.
The rescue is different from those seen in Greece, Ireland and Portugal because the idea is the money goes to Spanish banks and not the Government. In fact the money will arrived the FROB Spanish Bank Rescue Fund, for distribution, and FROB will act as an intermediary with the Government, diverting the funds to those entities in need. Spanish PM Mariano Rajoy says a decision by eurozone ministers to help Spain shore up its struggling banks is a "victory for the euro".
Eurozone debt crisis bailouts
Who When How much Main problem
Spain
Spanish flag and Bankia branch
June 2012
Up to 100bn euros
Some banks borrowed large amounts to lend out, feeding a property boom. The credit crisis and recession meant billions of euros worth of loans could not be repaid
Greece
Greece flag
May 2010 and March 2012
110bn and 130bn euros. Private lenders also wrote off debt
Greece borrowed large amounts for public spending. The financial crisis, combined with deep-seated problems such as tax evasion, left it with massive debts
Portugal
Portugal flag
May 2011
78bn euros
High government spending and a weak, uncompetitive, economy built up debts it could not pay back
Republic of Ireland
Irish flag
November 2010
85bn euros
Like Spain, a property crash plunged the "Celtic Tiger" economy into recession, saddling its banks, which had lent big to developers and homebuyers, with huge losses
Luis de Guindos gave a press conference on Saturday night to say he had accepted the rescue plan reached and said ?It is a loan in very favourable conditions, better than those of the market, and it will not leave the slightest glimmer of debt?.
The rescue is different from those seen in Greece, Ireland and Portugal because the idea is the money goes to Spanish banks and not the Government. In fact the money will arrived the FROB Spanish Bank Rescue Fund, for distribution, and FROB will act as an intermediary with the Government, diverting the funds to those entities in need. Spanish PM Mariano Rajoy says a decision by eurozone ministers to help Spain shore up its struggling banks is a "victory for the euro".
Eurozone debt crisis bailouts
Who When How much Main problem
Spain
Spanish flag and Bankia branch
June 2012
Up to 100bn euros
Some banks borrowed large amounts to lend out, feeding a property boom. The credit crisis and recession meant billions of euros worth of loans could not be repaid
Greece
Greece flag
May 2010 and March 2012
110bn and 130bn euros. Private lenders also wrote off debt
Greece borrowed large amounts for public spending. The financial crisis, combined with deep-seated problems such as tax evasion, left it with massive debts
Portugal
Portugal flag
May 2011
78bn euros
High government spending and a weak, uncompetitive, economy built up debts it could not pay back
Republic of Ireland
Irish flag
November 2010
85bn euros
Like Spain, a property crash plunged the "Celtic Tiger" economy into recession, saddling its banks, which had lent big to developers and homebuyers, with huge losses