The European commission report released on May 30, called on the European Union's relief fund (EFSF and future ESM) around member, directly on the bank transfers.
The commission suggested says, directly for the use of the rescue fund money to bank restructuring "is possible, can cut off the Banks and sovereign debt crisis of the relationship between the". The European commission President, jose Manuel barroso, on the day of the news conference said: "use agile and quick action should is the essence of the rescue fund."
The Spanish prime minister, pull on the Iraq also again called on, the eu should provide help bring the Spanish national debt interest rate at sustainable level. After Greece, Ireland and Portugal in the 10-year Treasury close to 7% of the level was forced to accept external aid. And pull the Iraq and don't want to walk three kingdoms made.
For the relief way up in the air. After a day, the financial times said, the European central bank (ECB) veto proposed by Spain's third largest bank di-n-propyl class (Bankia) plan.
Affected by this, the Spanish 10-year rise sharply to 6.6%, the same period and the German national debt interest spread to its highest since 1990. The European central bank in 30 days morning immediately issued a statement by mail to dampen said it was not a plan for the Spanish government expressing opinion.
The same day, the European commission says although many round for reform, the Spanish Banks still many challenges. "A few months ago, people or even simply do not know who attended the bank has a problem, clay was suddenly came hole and uncontrollable", located in Brussels economic think-tank Bruegel's researchers if, Doyle, Walsh (Zsolt Darvas) to our reporter says, "who also don't know of the Spanish bank how big a problem."
Relief way up in the air
The Spanish banking crisis has become increasingly urgent. External rescue has inevitably, the problem is in what way run to the rescue.
Red letter global economic and real estate chief analysts oliver Adler has in the research report said: "we think, Spain to seek outside help to solve the problem. The possibility the banking industry is more and more big."
The commission proposed new plan this, is by the European financial stability tools (EFSF) or the future of the European Union stability mechanism (ESM) around member, directly to the capital injection system, so it does not increase the national debt level.
But if Mr. Doyle, Walsh thought, even if countries to recognized the scheme, also can't solve the fundamental problem, EFSF have no ability to also have no enough money to deal with large financial system, "Europe needs a more integration of bank supervision, relief one-stop system, should the country for bank relief mechanism and apart".
Spain used in 2009 trying to "self-reliance", set up the total size of the 18.7 billion euros bank relief fund, but the present with only 5 billion euros ($) in cash; And di-n-propyl class bank on May 25 to put forward, it also need to add 19 billion capital assistance, to meet the government's latest demand.
But "ammunition" is far from enough. Due to the national debt interest rate has remained high, with the Spanish government
Sample funding constraints. So the government previously proposed schemes for, to provide government bonds di-n-propyl class bank, the bank from the European central bank loans as collateral funding gap to fill. So the Spanish government from the market with high without financing, but the risk is transferred to the European central bank balance sheets.
The Spanish prime minister, was also want to avoid the Iraq ChongZou Greece, Ireland and Portugal three kingdoms made: by the eu and IMF provide assistance, and accept the creditors in the financial crunch and economic reforms in the offer. The result was put in front, people with serious external strength interference in one country economy, Greece, Ireland and Portugal three governments change in succession.
Therefore, many times the European central bank called on Iraq by shots, on a secondary market intervention for Spanish national debt, alleviate its market pressure. But the European central bank still wouldn't budge.
More bad results has not yet arrived
In 3 years, Spain has four decreed trying to clean up their banking measures. The latest one in May 11,, the government asked the bank for "toxic" assets of real estate for 30 billion euro increased dial, and invite two external audit the company improve the credibility of the balance sheet. Reform measures focus on the real estate industry of bad assets, this also is the Spanish Banks face the biggest problem.
According to Spanish bank data, its banking and real estate and construction industries in relevant industry open bank system accounts for 10% of total assets, half of which are or will be bad debt, a total of 184 billion euros. In 30, the European commission said in a report of the real estate is still the main bank risk, and because the demand shrinking property prices will be further lowered.
But the real estate is not the only problem. The commission says the Spanish bank loans to small and medium enterprises and of the family mortgage is also risk factors, but the Spanish government reforms are not a few times for the solution to this problem.
Spain from the fourth quarter of 2011 began to enter into the economic recession, the European Union 30, the report finds that more bad results has not yet arrived, in the second half of 2012 the Spanish economy will experience of the deeper exploration; In the short-term, the unemployment rate will continue to rise. The current Spain's unemployment rate is up to 24%.
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