Brussels, 04/02/2013 (Agence Europe) - In a joint statement published by the European Commission and the European Central Bank on Monday 4 February 2013 after their second fact-finding mission, it is stated that the Spanish bank bailout plan “has progressed”.
The two institutions say: “Market access by the Spanish sovereign and private borrowers has improved, as foreign investors have returned to Spanish markets. Consequently, government bond yields have declined significantly and liquidity constraints on the Spanish banking sector have eased. Notwithstanding these welcome developments, heightened vigilance must be exercised to ensure that these positive trends can be maintained”. “Banking sector conditions have broadly stabilised since the outset of the programme, primarily as a result of several factors: the adoption of restructuring plans, the recapitalisation or imminent recapitalisation of the state-aided banks, the establishment of, and transfer of assets to, SAREB (the new asset management company), as well as the easing of funding constraints. It will be of the utmost importance to fully implement the agreed restructuring plans for state-aided banks to facilitate the adjustment of the entire banking sector”, explain the Commission and ECB, along with reforming the way Spanish building societies are run, reviewing the Bank of Spain's supervision procedures and improving the credit register.
Facing difficult economic times, Spain is urged to continue with budget consolidation and structural reforms. The next fact-finding mission will be in May 2013. (MB/transl.fl)