Spain's Economy Minister will meet investors in London on Thursday in the hope of tempting them to buy into a 'bad bank' that will house billions of euros of the country's soured real estate assets.
Madrid hopes the newly formed asset management company will help unblock the credit flows to businesses and families that have been progressively choked off as the country's economic crisis has worsened.
Its creation is also a condition of Spain receiving up to 100 billion euros ($129 billion) in European aid to patch up its creaking banking system, overexposed to a housing boom that crashed in 2008.
Spain expects private investment to finance more than half the heavily written-down assets - including foreclosed property and bad loans - that lenders will transfer into the entity, which is expected to be in operation by early December.
Read more: Spain targets London investors for bad bank | Reuters
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