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
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [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
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS