By www.valenciaplaza.com | Citigroup strategist José Luis Martínez believes the importance of the delay in the Spanish request for capital to bailout the country's banking sector has been overblown by commentators. Martínez, though, worries about the cost of the short-term credit for Spain.
To what extent the results of the latest audits on the banking sector have improved confidence in the Spanish banks? Confidence will return, sooner than later. We're talking about an external exercise that has been controlled by European authorities, which are the ones that give it credibility. But, I must admit, I find the recovery of trust somewhat slow to materialise.
How do you explain the delay of the Spanish government to request the banking bailout from Brussels? The truth is I do not think this is important at all. I bel
ieve that there is no sense of urgency in terms of need for capital in the sector, I mean, we are talking about increasing their own resources to offset risks that might come about in the coming years just to settle beyond any doubts the matter of their solvency. Solvency, at least for most banks, has been supported by results already.
Do you think the Treasury will maintain long financed over 5% short-term debt? I don't think so. I hope not. But to be right in this there must be decisions made at a national level with respect to new adjustments and at European level in terms of integration. I also hope that the European Central Bank shows a new take in expansionary measures, possibly as early as July.
Since summer holidays are just around the corner and the price of oil is down, will we spend less filling the tank of our cars? It depends on three variables: taxes, oil prices and developments in the euro zone. So yes, I really hope it costs us less in the short term.