The banks in Spain are in real difficulty since 2008 after the bursting of the real estate bubble. The State then endeavors to find a solution there as to found a new Order in Council which will be announced Friday after the Council of Ministers. A solution relating to the sale of the real assets of the banks will be evoked during this meeting.
The chief of the government Mariano Rajoy clearly affirmed that the financial participation of the State will be done only for the particular cases. In this direction, a provision of more than 50 billion euros was imposed by the public authorities in 2008 for the Spanish banks. In fact, it is because of the explosion of the real estate bubble the same year that these organizations were weakened.
At all events, the new law will relate to finance so that the State can regularize the situation. The objective is initially to put forward the solvency of these institutions by showing that they can refund their debts. According to this minister, the recovery of the situation is priority and can even pass by an injection of public funds. But it reaffirms that will be done only in the event of major force.
Concerning the deficit of the GDP, he announced that will not threaten the policy of the reduction of this fault which is of more than 8%. The concern is rather centered on the dubious values of the wallet of these companies following official money loans during the bubble. The ministry in load of the situation thus proposed to create an agency able to separate these credits from the assessment of each company.
Indeed, another injection of the public money could cause a situation of Bad Bank in Spain. The theory rests on the sale of the real estate held by the banks to regularize their situation.