HE Situation We are faced with a new bill this Monday European rescue package to the bank Spanish 2012. Treasury will pay 3.643 million Euro to the European Stability Mechanism (ESM), which will happen anyway Return to the community body 24.898 millionequivalent 60.2% of 41,333 million Amounts received on December 11, 2012 (39,468 million) and February 5, 2013 (1,865 million) restructuring the financial sector and bailing out the savings banks bankruptcies and their depositors. You will still have earring reinstate others 16.435 million In four payments in December of the following year four yearsuntil completed come back at the end of the credits 2027.
There was also Spain edge of the cliff that in 2012. Among the possible rumors breakup of the euro and growing suspicions internationally real state of banking Spanish after the epidemic housing bubbleTreasury has not lost its ability to provide financing in the markets Public deficit increased rapidlybut investors increasingly demanded higher interest for lending him money. Even if it had been able to continue issuing debt, this increase in cost Public finance To be unsustainableas a result suspension of payments by the State, hence the Government Mariano Rajoy he had to ask for help To other EU countries in June 2012.
Soon tough negotiations and in exchange for a tough list of reforms overseen by the men in black ‘troika’community partners approve a funding line up to 100,000 million euro under more favorable conditions than Spain could obtain from the market. In the end, only 41.333 million that would have gone to the rescue were used. BFA-Bankia, Catalunya Caixa, Nova Caixa Galicia, Banco de Valencia, BMN, Ceiss, Caja 3 and Liberbank (everyone today missing after being integrated into other assets). Also for the financing of its establishment SarebBad bank taking toxic real estate assets of these savings banks whose red numbers the current Government sees Forced by Europe to increase public debt and deficit in 2021.
“It doesn’t cost a euro”
Executive at the time promise HE it wouldn’t cost anything On behalf of the state: This is what the President has assured, Mariano Rajoy (“This is a loan to the bank bank will pay“); vice president, Soraya Sáenz de Santamaría (“It is done for a purpose: this it doesn’t cost a euro to the taxpayer”); and the Minister of Economy, Luis de Guindos (“This No cost to taxpayers Spaniards”). But the truth is Situation it was him had to pay 24,898 million already paid in addition to some 3.276 million interest and commission It will have to face interest and commissions on the remaining 16.435 million between 2012 and 2023.
The vast majority of money injected is lost forever or is difficult to fully recover. Like this, 24.096 million Contributed in euros bankiathey were evaluated approximately 6,340 million can be recovered Although there will be a revaluation in the stock market at the end of 2022 CaixaBank The bank that the current Government agreed to merge with the nationalized bank increases this amount. 2.192 million was injected into SarebOn the other hand, already taken for accounting purposes lossOf the 32,610 million people whose remaining assets were saved, They lost 28.133 million, 86.2%. If it were not volatile, all this money would make billing with the ESM much more comfortable and facilitate the consolidation of public finances.
low interest
On the other side of the scale is the European rescue package. financially viable For Spain. Country according to ESM saving By 2019, interest will account for approximately 1.2 points of GDP (approx. 12 billion Compared to the cost of buying money from the market in December 2012. Although reference rates increased to 4.5%-4% European Central Bank (ECB) To combat high inflation average ransom rate increased from 0.8% last year to approximately 0.8% 1.1%. Moreover, the community institution pointed out that the banking restructuring that enabled the bailout was one of the main causes of the crisis. economic recovery As of 2014, the country’s
In fact, Spain received authorization from the ESM. Repay 17.612 million euro, 42.6% of the received, i.e. voluntary and expected In nine installments between July 2014 and October 2018. It was about giving the image of strong and rapid recovery: first country of five rescued (plus Ireland, Portugal, Greece and Cyprus) will start paying off their debts, making it by far the highest percentage payer to date. increased interest 30 percent of new debt issued by the Treasury (at 3.74 percent so far this year, and the average cost of all securities in circulation has risen to 2.06 percent) will make it more expensive to repay outstanding amounts, but these are very small numbers . And manageable (For example, this Monday’s €3,643 million represents only 2.1% of the €172,521 million the State plans to issue in 2023).