Bankia tried on Saturday to send a reassuring message on his “strength” after an aid application record of over 20,000 million euros to the state, which along with the autonomy they could ask indebted worse fears about the ability of Spain to avoid a debt crisis.
After sanitation, Bankia will be “strong, efficient and profitable,” said its president, Jose Ignacio Goirigolzarri, who said that the situation of this institution “can not be extrapolated in any way” the rest of the Spanish banking sector.
“We have done a thorough analysis and I am very calm before the stress test will come,” he told a press conference, before explaining that before June, the institution will submit a strategic plan.
Bankia announced Friday that it needs an additional EUR 19,000 million, bringing the total rises to 23,500 million after the announcement on May 9 that a loan to the institution has been transformed into participation.
Resulting from the union of seven savings banks in trouble in 2010, Bankia has been the victim of the economic crisis plaguing particularly Spain following the bursting of the housing bubble in 2008.
The bank also introduced a loss for 2011 of 2.979 million euros, although it had previously announced a profit of 309 million euros.
Is it a failure of the entity’s president Rodrigo Rato, forced to resign with your team? What can you say to the small shareholders who ask heads after the shares have traded Bankia lost more than half its value since it went public in July 2011?
“I have not come here to debug any kind of responsibility,” said Goirigolzarri, questioned about the possible opening of an internal investigation, stressing that his predecessor, Rodrigo Rato, former Minister of Economics and former Director General of the International Monetary Fund (IMF), faced with a situation “very complex”.
Bankia is very exposed to real estate, one of the pillars of growth of the Spanish economy in its heyday. Of the total of 37,500 million euros of assets in the sector, the vast majority (31 800 million) may not be returned ever.
The State undertook to provide all necessary funds to Bankia, which represents 10% of the Spanish financial system and is therefore considered as a bank “systemic”, ie going down, drag with the sector.
Although this is the most spectacular rescue, however, is not the only one in a banking sector that accumulated at the end of 2011, 184,000 million of troubled real estate assets, ie, 60% of your portfolio.
In total, eight banks have received public funds for a total of 32.869 million euros and 6,200 million were delivered by the Bank Restructuring Fund (FROB), the newspaper Expansion.
The capacity increased to 15,000 million FROB in February and should be nurtured by the state to come to the aid of troubled banks. What will continue to increase the national debt, which should also help the regions debt.
Catalonia, whose budget deficit was 3.29% of GDP in 2011 and is facing very high costs of financing, on Friday urged the Government to the creation of regional bond hispanobonos or issued together.
The Government has announced it has signed a syndicated loan of 30,000 million euros, which could increase to 35,000 million as needed to assist municipalities to pay outstanding bills, amounting to 19,400 million.
In return, the government has imposed austerity measures unprecedented autonomy. The aim is to reduce the public deficit from 8.9% in 2011 to 5.3% this year. An objective difficult to achieve in a recession, according to many experts.