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Spanish Banking does not need more European aid

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A document from the European Commission (EC) has had accessed the agency Reuters claims that Spain does not need to use the available funds of the ESM to continue supporting the banks. The problem of the sector is the profitability. Europe granted Spain up to 100 billion euros to bail out its financial sector, but so far only 41,300 million have been used. Despite continuous rumors about the need for more European money for banking, Brussels believes that the financial sector does not need more help. It thus consists in a document of EC in which appear the conclusions of the recent visit to Spain of the European Central Bank (ECB) and of the International Monetary Fund (IMF). Brussels stands that now the main problem of the Spanish banks is be profitable, in order to have enough income to deal with provisions requiring the rise in delinquencies. Brussels also cites regulatory changes as one of the aspects requiring banks to strengthen their income level to deal with the sanitation. The reference is to the new regulations of the Bank of Spain that hardens the classification of the refinanced loans, and that will force institutions to emerge more debt. Another issue that concerns the European authorities are the processes of arbitration that there in March for holders of preferred that, in accordance with the set the Memorandum of understanding (MoU) signed last summer, should assume part of the cost of the rescue. Bankia and other nationalized have opened, under indication of the Government, arbitration processes by which the shareholder who can prove having been deceived at the time of purchasing the product may recover fully its investment. Brussels believes that "the Spanish banking stability could be affected by uncertainty about the distribution of costs in rescuing banks and arbitration proceedings opened by the marketing of hybrid instruments to retail investors," according to the document cited by Reuters .   [caption id="" align="alignnone" width="460"]Spain and UE Image: La Voz de Rusia[/caption] Source: Spanish.ruvr.ru
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