Public cost of the Spanish financial crisis amounts to 5.9% of GDP

The Bank of Spain’s includes the following: capital provided by the Fund for the Orderly Restructuring of the Banking Sector (FROB 1), totaling €980bn (£826.26bn); capital provided by the FROB 2, totaling €13.4bn (£11.298bn); capital injections received after the financial European aid, totaling €37.9bn (£31.954bn); the acquisition of convertible bonds from fragile non-nationalized entities, totaling €1.14bn (£961.2bn); and surprisingly, €7.9bn (£6.66bn) provided by the Deposit and Investment Guarantee Fund (FGD, by its Spanish initials).

Neither the Asset Protection Schemes (EPAs by its Spanish initials) nor the contributions to the Sareb (Sociedad de Gestión de Activos Inmobiliarios procedentes de la Reestructuración Bancaria, in Spanish) are included. It is important to mention that the involvement of private banks in restructuring the financial system has been remarkable, especially for Spain.

About the Author

Carlos Díaz Guell
Editor at and, Carlos began his career in financial journalism as founding member of El País. He's been communications director of Bank of Spain, member of the ECC at the European Central Bank, Institutional Relations director at Iberia and editor at La Economía 16 magazine.

Be the first to comment on "Public cost of the Spanish financial crisis amounts to 5.9% of GDP"

Leave a comment