SPAIN

HOW LONG SPANISH BANKS CAN GO WITHOUT TAPING THE EUROPEAN FINANCIAL STABILITY FACILITY ?

NOT MUCH TIME LEFT, ACTUALLY !

MAJOR CONCERNS OVER THE CREDITWORTHINESS OF TOP SPANISH BANKS ARE STILL FUELING SPECULATION THAT THE EUROPEAN BAILOUT FUND MIGHT BE NEEDED ANY TIME SOON TO BACK-UP  THEIR RECAPITALIZATION.

THE SPANISH PROPERTY SLUMP MOSTLY LINKED TO  THE TOURISM ECONOMIC RENT  HAS PROVED TO HAVE A DEVASTATING EFFECT ON THEIR BALANCE SHEETS.

MORE THAN 60% OF SPANISH BANKS PROPERTY ASSETS MAY BE CLASSIFIED AS  BAD LOANS….THIS REPRESENTS ALMOST 200 BILLION EUROS.

HOW LONG CAN SPAIN GO WITHOUT FRESH MONEY  TO BE GRANTED BY THE EURO BAILOUT FUND ?

4 OPTIONS IN THE PIPELINE SO FAR :

  1. MORE THREE-YEAR FUNDS FOR SPANISH BANKS FROM THE EUROPEAN CENTRAL BANK.
  2. MORE PURCHASES OF GOVERNMENT BONDS BY THE EUROPEAN CENTRAL BANK.
  3. TOTAL BAILOUT OF THE SPANISH ECONOMY
  4. SPANISH BANKS BAILOUT.

TIME TO TOTALLY RETHINK CORPORATE AND REAL ESTATE BANKING ACTIVITIES IN SPAIN, ANYWAY !

PHLDUCX