The success of the programme of assistance, said the EU’s Commissioner for monetary Affairs Olli Rehn. At the same time he pointed out the problems faced by Spain.
Thursday, January 23, expired program of aid to Spain, which began a year and a half ago due to acute shortage of cash in banks of the country. Allocated from the stabilization Fund of the European Union for 100 billion euros to Madrid enough 41.3 billion. Noting the successful completion of the program, the EU’s Commissioner for monetary Affairs Olli Rehn on the same day warned Spain of the necessity to continue reforms to fully overcome the financial and economic crisis and reducing unemployment. In December 2013, with similar evaluations of the assistance to Spain by the European Central Bank and the international monetary Fund.
The banking crisis and reform
At the beginning of the last decade, Spanish banks became interested in mortgage lending. The global financial and economic crisis of 2008-2009 caused a drop in demand for property. The result is the bankruptcy of hundreds of construction companies, the assets of Spanish banks were replenished with cash instead of real estate, which could not pay its owners. The banking system was paralyzed, losing the ability to make loans, and to Finance the economy of the country.
The allocated EU money went to implementation of the banking reform launched by the Spanish government in 2012. In the framework of the reform program was implemented nationalization, merger or closure of banking institutions. So, in 2013 in Spain stopped the activities of 36 small banks, whose further work seemed unprofitable. In addition, was created so-called bad bank (bad Bank) is the institution Skupova banks on EU money impaired assets. Were simultaneously reduced the salaries and bonuses of Bank managers.
The joint efforts of Spain and the EU
“Today we can state that the EU program on assistance to the Spanish banks has played a positive role, – said in a statement on Thursday the statement of the Wren. The financial market in Spain has stabilized, banks acquired cash liquidity, they can lend, improved financing of the economy”. European politician also drew attention to the improvement in the management of Spanish banks and increased control over their activities by the Central Bank.
According to the European Commissioner for monetary policy, positive results were achieved through the efforts of the Spanish government’s reform and solidarity of the EU partners. Improvement of the financial system was “a good basis for the resumption of Spain: restoring trust in the global financial markets, improving the competitiveness of Spanish goods and services,” said Olli Rehn.
However, Rehn warned the Spanish leadership that not all problems are solved, so “should consistently continue the reforms”. Commenting on this statement, a senior analyst at the Spanish Central Bank, josé Luis Sanz recalled in an interview with DW that Spain will soon privatize nationalized during the crisis, banks such as Bankia and Catalunya Banc, as well as to more actively implement the real estate acquired “bad Bank”. In addition, the expert believes that “banks should be faster to restore its core activities – lending to the economy, with a focus on small and medium-sized enterprises”.
It is these companies, according to another source, DW Professor of Economics Madrid Catholic education centre of the University Antonio Gomez of the Golan is “the main engine to overcome the crisis”. He also reminded of the other pressing needs of Spain, which are referred to in the statement of Rena : reducing the budget deficit, so that in 2016, reducing it to binding for the EU of three per cent, and the need to complete the reform of the labour market – combating unemployment..