Goldman Sachs expected the Spanish government could come as early as in mid-September before a formal application for full assistance. The same day, Pacific Investment Management Company Chief Executive Officer and Co-Chief Investment Officer, Elian warning, Spain hesitant to round Shen aid issues may lead to serious consequences. According to Spanish media reports, the Spanish government is considering the country's bad bank into an investment fund, details are expected to be released on the 24th.
Goldman pointed out that September, the euro zone finance ministers and economic ministers meeting will be held in Cyprus, Spain may be the meeting during the official presentation of the application for assistance. The existing capital of the Spanish government is still sufficient, but the country's 20 billion euros in October, there will be long-term bond maturities, and interest expense of 4,000,000,000, which will become Spain's round one of the reasons for help.
The Elian pointed out, the hesitancy of the Spanish Government on the issue of comprehensive Shen aid, will have serious consequences, the fourth and third largest economies of the euro area, Spain and Italy may be dragged into the abyss of debt crisis both.
Elian said there are three short-term benefits in theory, apply for assistance: cheap large loans; gain time for the implementation of in-depth structural reforms; government and banking capital chain has been consolidated, removing barriers to businesses and households to obtain loans . But in fact, from Greece and other countries, the ideal expectations are not transformed into reality. Because the application for assistance means declared shut out by the market, and thus the recipient countries to finance the cost of continuing high trapped in the aid conditions require fiscal austerity, economic growth and new jobs can not achieve the desired goals. This is Spain reluctant to apply for a comprehensive aid reasons.
Earlier, the euro area has been approved by the scale of 100 billion euros aid the Spanish banking sector plan. The bleak prospects for the Spanish economy, the real estate industry remains in the doldrums, the bank's bad debt rate soared deposits intensified flight, the Spanish banking crisis long treatment refractory. According to the latest data of the Bank of Spain, the total amount of non-performing loans held by the Bank of Spain in June to 164.4 billion euros, accounting for banks' holdings of the proportion of total debt was 9.42%, the highest value since the data began tracking statistics department in Spain since 1962.
Spanish banking deposits in June decreased by 6.59% compared to the same period last year, the largest decline on a year-over-year.
Other News:
Cut behind the insured contradiction
Goldman Sachs is expected to Spain or September aid
China facing steel producers Guaixiang
Korean media said the two Chinese fishing boats were seizure on Han Guohai Polic
Liu Xiang injury the heavy insider is informed in advance the CCTV estrous expla
The steel enterprises competing promotional fear steel prices and then dip
The PLA Major: the Diaoyu Islands optical propaganda not the detention
Holding a green card steel boss Kuangpian the two hundred million purchase price
