Wand, 17 октября 2012 г., 9:01
Worries are increasing that Spain may become the fourth Eurozone country to require a full bailout. Spain has already asked for help with their banks - their main problem - and will receive up to 100bn Euros ($125bn; £80bn) to be targeted at its financial sector. An audit has now revealed that the banks may need two thirds of that amount to cover bad property assets in a worst case scenario. With the recession in the country deepening it is struggling to balance its books and further pressure is coming from its regional government, who are starting to ask Madrid for financial help to deal with their own debt issues. What went wrong with Spain? Spain's story illustrates the fact that the Eurozone's problems run far deeper than the issue of excessive borrowing by ill-disciplined governments. Greece, Portugal and Italy all had way too much debt. However the Spanish government's borrowing was under control - that is, it ran a balanced budget on average every year until the eve of the 2008 financial crisis. As Spain's economy grew rapidly before 2008, its debt-to-GDP ratio was falling. Germany's, by contrast, continued to rise. After Spain joined the Euro, the country experienced a long boom, underpinned by a housing bubble, financed by cheap loans to builders and homebuyers. So, although the Spanish government still had relatively low debts, it has had to borrow heavily to deal with the effects of the property collapse, the recession and the worst unemployment rate in the Eurozone. What is the problem with the banks? It is a familiar tale of high-living in the boom years, followed by an uncomfortable return to reality. The situation has been made worse by the fact that the banks borrowed the money on the international markets to lend to developers and homebuyers, a much riskier strategy than using the deposits they got from savers. This has left many banks struggling with massive losses. Not all of the banks are in this situation, however. The International Monetary Fund said a large part of the banking sector, including Santander and BBVA, is well run and resilient. Source: www.bbc.co.uk/news/business-17549970
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