“We expect the Spanish banks prompted a volume around 30,000 million euros”, Luis de Guindos, Spanish economy minister, said in an interview published by the daily La Vanguardia.
In June, the ECB announced a plan for long-term financing TLTRO called for about 400,000 million euros which will include an auction in September and another in December.
The banks participating in these operations may borrow initially 7% of its total loans to the private sector in the euro area, excluding mortgages at the end of April 30, 2014 and public sector loans.
The minister said that “Those credits will finance companies (…) and individuals at very competitive conditions.”
The market expects that banks in Europe come to the auction to be held in mid September encouraged by the cut in ECB interest rate to a new low of 0.05%, 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 has not yet been transferred to the real economy and, although the new credit begins to grow, loan balances still yield negative rates.
In addition, Spain’s banking sector has been subject to a process of deceleration has slowed lending to households and businesses.
Concerning possible sales of nationalized Bankia, De Guindos reiterated that in mid-October will probe a second divestiture. Last February, the government sold 7.5% of Bankia by around 1,304 million euros.
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