the text agreed between spain , eurogroup in hours of tuesday 10 july 2012 included commitment spanish government undertake substantial reforms of country s financial sector. reform, overseen european central bank, european commission , international monetary fund includes creation of bad bank group of toxic real estate assets weighing down banks balance sheets.
this bad bank receive funding european union via 2 different means: capital injection fobr european bailout fund , acceptance ecb of bonds issued payment supposedly impaired assets. spain have additional 20 50 billion euros finance bad bank, become vehicle government , financial institutions group financial sector s undesirable assets , later sell them.
any institution receives eu funds of sort required transfer assets bad bank. transfer prices assets have yet set , spanish authorities submit proposal @ end of august create entity,. start operating november
.
for spain receive bailout of banking system, 32 short-term conditions have been set. 1 of these conditions, number 7, refers bad bank. @ end of august governing regulations must ready, , november must operational:
...7. prepare comprehensive blueprint , legislative framework establishment , functioning of amc. end-august 2012...
...15.adopt legislation establishment , functioning of amc in order make operational november 2012....
the new governor of bank of spain, luis maría linde, started work immediately, stated when appeared in congress of deputies, assuring house possibility of creating bad bank or toxic asset management company being studied. governor of bank of spain stated working on project did not have necessary skills manage it.
the 30 billion euros fobr distributed between bankia, catalunyacaixa, novagalicia banco , banco de valencia.
Comments
Post a Comment