Market calls for early move on €50bn Spain provisions call

06 Jan 2012

Market pressure could force Spain’s banks to take upfront provisions of €50bn against non-performing real estate loans — rather than over several years as suggested by the country’s finance minister — analysts and bankers have warned.

Spain’s new finance minister, Luis de Guindos, was reported as having said on Wednesday that the country’s banks may have to set aside as much as an additional €50bn in provisions against problematic real estate assets of €170bn. De Guindos suggested that the banks could add to the ...

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