London investors targeted for Spain's new bad bank

4 October 2012

Investors in London are to be targeted by Spanish policymakers as potential buyers into the struggling Iberian nation's new "bad bank".

Officials in Madrid have created this new institution in the hope that it will help increase fluidity in the Spanish economy by housing much of its toxic real estate assets.

And, according to Reuters, economy minister Luis de Guindos is scheduled to meet investors in the British capital later today (4 October) with the intention of persuading these professionals to get involved in the scheme.

Under the terms of this initiative - which represents one of the conditions of Spain receiving up to €100 billion ($129 billion) to aid its ailing banking sector - the government wants private investment vehicles to own at least 55 per cent of the bank.

"The bad bank will buy assets at very conservative prices ... it will bring housing on the market at reduced prices," Mr de Guindos explained.

By Gary Cooper

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