MADRID | By J.P. Marín Arrese | The Spanish Justice Department has launched a thorough investigation into the accounts which were submitted prior to the original BANKIA share issuance back in 2011. Experts from the Bank of Spain have delivered a devastating report implying these accounts did not provide a fair elucidation of the balance sheet. Should the final ruling follow that line, it could open the way for multi-billion euro claims from investors. Even though BANKIA has announced it can cope with such losses, with taxpayers footing two-thirds of the bill, the impact on Spanish financial market credibility could wreak havoc.
Spanish banks’ bailout
THE CORNER TEAM | Madrid and Dublin celebrated cutting their bailout umbilical cord on Thursday, renouncing to extend the aid after their aid programmes will end. This means they will be able to enjoy economic, budgetary and funding conditions like most other sovereign countries. To finally fund themselves normally on the markets, without paying an extra penalty. However, there is still homework to do: in the case of Spain, the country needs restructuring its local savings banks.
MADRID | By Francisco López | Spain’s credibility is at stake. In the coming months the country will need to tackle its two main economic commitments: compliance with the deficit target of 6.5 per cent in 2013 and requesting (or not) an extension of the bank bailout in November.