Brussels, 26/10/2012 (Agence Europe) - Spain and its European lenders, represented by the European Commission and the European Central Bank, are moving forwards on the introduction by Spain of the “bad bank” or Asset Management Company, to which Spanish banks will transfer their toxic assets. In a press release published after their first review mission in Madrid from 15 to 26 October (carried out along with the IMF), the Commission and the ECB said the mission had “reached agreement with the Spanish authorities on important aspects of the design and functioning of the future Asset Management Company (AMC), including on its overall size and governance. This will, as a cornerstone of the programme, allow the AMC to be operational as of 1 December.”
The two EU institutions say that serious challenges fact Spanish banks, which have been earmarked up to €100 billion in aid from the European Stability Mechanism (it is said that only €40 billion of this will be required). They said decisive action is required of the Spanish government, even though the markets are calm for the moment.
Welcoming the mission outcome, Euro Commissioner Olli Rehn said: “The European Commission will proceed with the assessment of the recapitalisation and restructuring plans of Spanish banks, which should pave the way for the first disbursements for entities in need of public support, as foreseen in the programme. I recall that this programme is one of three key elements of the response to the crisis in Spain, together with the necessarily ambitious fiscal consolidation strategy and the far-reaching structural reform programme.” (MB/transl.fl)