MADRID (Reuters) – Spanish banks will ask about 30,000 million in loans to the European Central Bank as part of the entity funding made available to the European financial sector until the end of the year to revive credit to households and businesses. “We expect the Spanish banks prompted a volume around 30,000 million euros, “Spanish Economy Minister Luis de Guindos said in an interview published Sunday by the newspaper La Vanguardia. In June, the ECB announced a plan for long-term financing called TLTRO by 400,000 million including an auction in September and another in December. The banks participating in these operations may take initially paid July 1 percent of total loans to the private sector in the euro zone, excluding mortgages closing April 30, 2014 and public sector loans. The minister said in the interview to Catalan newspaper that “these loans will finance companies (…) and individuals on highly competitive. “ The market expects that banks in Europe come flocking part at the auction held in mid-September encouraged by cutting interest rates to a new new low of 0.05 percent – adopted by the ECB on Thursday – and better financing conditions also unveil a plan after purchase of private assets. In the countries of the periphery of the euro area, improving financing conditions have not yet been transferred to the real economy and although the new credit begins to grow loan balances still yield negative rates. In addition, the banking sector in Spain – rescued in late 2012 and 2013 with 41,300 million euros of European state aid – has been submitted a process of deleveraging has slowed lending to households and businesses. As for possible sales of nationalized Bankia (BKIA.MC: Quote), De Guindos reiterated that “from mid-October will probe a second divestiture”. Continued …
Sunday, September 7, 2014
Spanish Bank asked 30,000 mln euros in loans to the ECB … – Reuters
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment