Four Spanish lenders ready asset transfer to 'bad bank'
February 27, 2013 12:56 AM EST
Four mid-sized Spanish lenders are poised to transfer soured property assets to a government-backed "bad bank", which on Tuesday issued just over 14 billion euros (12.2 billion pounds) of bonds to give to the banks as payment.
The bad bank, known as Sareb, is issuing senior bonds, which will be bought by the state, according to a filing with Spain's companies register.
The banks are expected to transfer deeply discounted assets for roughly that amount to Sareb, getting bonds in exchange which they can use as collateral to get funding from the European Central Bank.
Sareb was launched at the end of 2012 as a condition of a 40-billion-euro European rescue of the country's ailing lenders. It is designed to clean up Spain's banking system after a property crash five years ago.
Four of Spain's weakest banks, including Bankia
Four more banks are now set to dump more assets in Sareb on February 28, taking the bad bank's assets to between 50 and 55 billion euros.
Caja 3, which is in the process of being taken over by Ibercaja, said on Tuesday that it was transferring just over 2.2 billion euros of property assets to Sareb.
Caja 3 needed 407 million euros in European funds to rebuild its capital. Its merger with Ibercaja was dependent on its clean-up going ahead.
Liberbank, BMN and CEISS will also be parting with rotten real estate assets.
(Reporting by Sarah White and Jesus Aguado; Editing by Mark Potter and Louise Heavens)
Most Popular Slideshows
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- Microsoft Doubles OneDrive Space To 30GB Due To iOS 8 Update Issues
- G20 Summit in Nov: No Consensus to Bar Russia, Putin Open to Attend in Australia