The Spanish banking prompted 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 TLTRO called by some 400,000 million including an auction in September and another in December.
The banks participating in these operations may take initially paid 7% of its total loans to the private sector in the euro area, excluding mortgages at the close of April 30, 2014 and public sector loans. The minister said in the interview to Catalan newspaper that “these loans will finance companies (…) and individuals at very competitive conditions.”
The market expects that banks in Europe come largely at the auction held in mid-September encouraged by cutting interest rates to a new low of 0.05% again – taken by the ECB on Thursday – and better financing conditions after also unveil a plan asset purchase private. 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, Spain’s banking sector – I rescued between late 2012 and 2013 with 41,300 million euros of European state aid – has been subjected to a process of deleveraging has slowed lending to households and businesses
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As for possible sales of nationalized Bankia, De Guindos reiterated that “from mid-October will probe a second divestiture”. Last February, the Government sold 7.5% in Bankia for about 1.304 million euros or 1.51 euros per share. In the bag, Bankia closed Friday with a gain of 1.06% to 1.529 euros. After the Spanish economy grew 0.6 percent on-quarter in the second quarter thanks to rising domestic demand, Guindos said the country would expand by 0.5% in the third quarter supported in the services sector. “The risks to Spanish economy over come out. With advanced data we see that the industrial sector has lost some speed, while the service sector is in an expansive, accelerated phase, “he said.
But reliable sources of economic analyzes suggest that the “export machine” has stopped and no longer pulls the cart of Spanish GDP, so one must resort to foreign loans and debt to finance growth, the Spanish, who just started. Economists and analysts polled by Elmundofinanciero.com certify that “no credit can not grow” and that it must finance the modernization of machinery and equipment obsolete to the six years of crisis. Also in the public sector is missing a chapter on investment for the renewal of assets that require maintenance, such as highways or roads, streets and other municipal works and infrastructure maintenance that have aged.
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