The Bank of Spain clarified several points on the IPO of Bankia – Yahoo Finance Spain

Madrid, Jan 27 (EFE) .- The Bank of Spain has issued a statement clarifying a judge of Navalcarnero (Madrid) various issues related to output Bankia IPO, including the formulation of their accounts, their allocation to provisions and the negative impact of the economic context in its stock market performance.

This is a document that the body responds to a series of questions from a judge of this suburb, which is interested in the IPO of the company, which took place in July 2011.

But with this document clarifies the Bank of Spain, have not reviewed the accounts submitted by Bankia occasion of its IPO in July 2011, nor any expert reports related to the transaction filed with the Court.

The document provides answers Navalcarnero the judge said the Bank of Spain, “limited to providing factual information about the Spanish macroeconomic environment in 2011 and 2012; to also provide accounting data on Bankia and / or savings banks that were the same; and express their interpretation of various aspects of the accounting rules of credit institutions “.

The judge’s questions Navalcarnero refer to a report by two experts, assigned by the Bank of Spain to work under the judge of the Audiencia Nacional Fernando Andreu, who claimed in a report that prior to his jump to the park in the summer of 2011 accounts did not reflect the true picture of the company.

Neither the whole of that year nor the de Rato made the first or after the arrival of Jose Ignacio Goirigolzarri.

According to these experts, there were in all cases “accounting errors” that did not show the real state of the Deloitte group, as audit firm, it must detect.

The Bank of Spain endorses changes in valuations in the 2011 accounts were made, and states that revisions were also made in other integration operations of credit institutions.

It also ensures that you can not evaluate financial statements of the past given the information we have now (as did the experts) and not to be had at the time.

Another point highlighted the Bank of Spain is varied economic conditions unexpectedly in the second half of 2011 after the IPO, and that affected the entire financial sector, including Bankia.

“Faced with what is stated in the predictions, there was a worsening crisis in Spain, with the entry into a totally unexpected second recession, as in the euro area; this meant very important wholesale funding difficulties for banks and their translation to finance real activity, the statement said.

Finally, on the allowance for provisions, the Bank of Spain the figure at 3.027 million I had Bankia, with which could have coped with the 929 million of adjustments that claims one of the legal experts or 754 million proposing his partner.

The agency says that “it can be concluded, therefore, the general and specific provisions not constitute assigned specifically to cover additional damage to specific exposures that may be identified after “

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