Luis de Guindos, Spains new minister for competitiveness and the economy, has told the Financial Times that Spains banks will need to provision an additional 50 billion against their bad real-estate assets.
This is not Ireland. Its a completely different order of magnitude. We have a property problem in Spain, but its manageable.
Hmmm 176 billion of bad loans on dodgy real estate will take quite a lot of managing. He caveats:
Its manageable for institutions with a new round of consolidation...because remember that for Santander, the big banks, its obviously doable, but its not distributed evenly [among the different banks] so you need an extra round of consolidation ...