Rus News Journal

The eurogroup has given green light for allocation of the financial help to banks of Spain

Eurogroup has approved a package of the financial help to the Spanish banks at the rate to 100 mlrd euro, transfers Reuters. We have legislatively fixed that was discussed at the previous sessions of Eurogroup, officially having approved the agreement on the mutual understanding, containing conditions on which Spain will receive the financial help for rekapitalizatsii banks - the Minister of Finance of Luxembourg Ljuk Frejden has declared. A similar step 17 Ministers of Finance of the countries of a zone of euro have supported all.
the financial help will arrive Spain not at once as audit of some the Spanish banks till now is conducted. Madrid expects to receive the first tranche of the help at a rate of 30 mlrd euro already in the end of July 2012.
Spain has officially requested of the European Union the help on rekapitalizatsiju bank system at the rate to 100 mlrd euro on June, 25th 2012. The head of the Ministry of Finance of Spain Luis de Gindos in the letter to the head of Eurogroup Jean - to Claude Junkeru has informed that the specified sum will be enough for rekapitalizatsii the credit organisations and creation additional safety pillows for financial sector of the country.
in turn the eurocommissioner on economy and the monetary policy Olli Ren informed that the help of Spain will be allocated in a category of credit of stabilisation mechanisms EFSF/ ESM on the terms of carrying out by the government of the country of reforms of financial sector and structural reforms according to arrangements with the European Union.
meanwhile to the official reference of the authorities of Spain behind the financial help it was informed that for restoration of bank system of the country it can be demanded from 51 to 62 mlrd euro. The first audit of bank sector which was spent by consulting companies Oliver Wyman and Roland Berger, included two stress - the test - with the base scenario and on a case of extreme economic circumstances, in particular a slump of prices in the real estate market.
Rekapitalizatsija is necessary for small group of the banks which problems the Spanish government has already started to solve by nationalisation. Four banks - Bankia, CatalunyaCaixa, NovaGalicia and Banco de Valencia, and Bankia, the fourth on volume of actives bank of Spain are at present nationalised, has already requested the financial help at a rate of 19 mlrd euro.
in the beginning of July 2012. The government of Spain declared that is at a finishing stage of working out of new anti-recessionary measures which mean reduction of state expenses and increase in taxes. The program in the size to 30 mlrd euro is directed on achievement of target indicators on budgetary deficiency on 2012. It is calculated for some years and can include increase of the basic consumer tax, introduction of new power gathering and road duties, pension reform, reduction of salaries by the state employee, and also radical measures on reduction of expenses of the ministries and regions.
the program is based on the data under nominal gross national product of Spain (approximately 1 trln euro a year) and is addition to already declared reduction of state expenses on the sum 48 mlrd euro. Analysts assumed that anti-recessionary measures can deepen only the Spanish recession caused by debts of regions and bank crisis.
crisis in Spain has burst against proceeding problems in the market of real estate and recession of national economy throughout two last quarters. All listed factors have led to profitableness jump on state papers of Spain and increase in probability of the reference of the country behind the international financial help.