- January 31, 2012 at 8:59 am #56510
in Q4 of 2011 profits down 98% in order to protect themselves from spainish property.Is this a sign of things to come right across the spainish banking sector abit of truth of the real picture
- January 31, 2012 at 9:31 am #107779
At long last Spanish banks are being forced by the new government to reveal the true extent of their catastrophic property losses.
I predict more mergers and fewer banks as a result.
Some banks will require recapitalisation and the figure is estimated at up to €100bn.
What does this mean for the future of the Spanish property market? Very little until recap takes place. Banks cannot afford to lend money at the moment and that’s a log jam preventing the market from moving forward.
The other major obstacle is the government simply does not have the cash to do it.
- January 31, 2012 at 4:44 pm #107781
i think this will start the slide of prices to the bottom then as cash ready buyers return to pick up the bargins then we may see some signs of a recovery in 2015,not of rising prices but of properties actually selling in larger numbers rather than the dribs and drabs we see at the moment
- February 3, 2012 at 9:11 am #107800
Welcome restructuring of Spanish banks announced yesterday by the finance minister will likely now accelerate mergers in the sector considerably. €50bn is a lot of money for the sector to raise and will likely burden them with further debt.
I think this move is also an attempt to force the banks into selling off their massive property assets way below their current unrealistic levels. It will also have a useful knock on effect to the rest of the market depressing prices even further. In my view a further 20% devaluation is overdue to get the sector off it’s knees.
- February 3, 2012 at 11:50 am #107802
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