Minister: Spanish banks will need $77bn in aid

24 September 2012

Stress tests will show Spanish banks need no more than the preliminary estimate of around €60 billion ($77 billion) in aid, a senior government official has insisted.

Later this week (28 September), the outcome of an independent investigation by consultancy Oliver Wyman on the country's ailing financial system will be published.

Fears have mounted in recent times about the extent of international assistance financiers in Spain - many of which have been crippled by their exposure to the nation's toxic property industry - will need. The subsequent adverse impact on banks' ability to invest in innovative new technologies, particularly in the mobile arena which has been a clear leader in Spain, will be considerable.

Spain's economy minister, Luis de Guindos, has moved to allay liquidity fears conerning Spain banks, however, by insisting the initial predictions put forward earlier in the year of around €60 billion in aid required will prove to be accurate, Reuters reports.

This broadly correlates with the view of Francisco Gonzalez, chairman of the large BBVA bank, who was quoted by the same Reuters news source as saying last week that a total figure of "around 70, 75, or €80 billion" will be required, which included the €20 billion that has already been issued to banks. Depends how you do the accounting it seems and at what starting point, although that has often been the case throughout this on-going crisis.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development