Is the EC pushing Spain towards a bailout?

[Ephilant]

That doesn't work on PAYE. But organised refusal, of whatever can be refused, across Europe, will have an effect.

We did that here for years, and they all started calling us names

[ang]

Barroso says Europe expects formal aid request from Spain.

[DCon]

remember when Spain only needed EUR 100,000,000,000?

zerohedge ‏@zerohedge

Spain May Need EU250b Bailout, ’Too Large’ for EFSF: ING

[DCon]

Anothervisit from the Bailout doctor is looking likely

[DCon]

They want to wait for ESM but might not have time

Does the EFSF have any money??

BRUSSELS (MNI) - Eurozone governments would prefer to use the new
permanent bailout fund, the European Stability Mechanism, to finance an
aid programme for Spain's banking sector, but assistance might have to
come from the European Financial Stability Facility if aid is called for
before the ESM is ready, a senior EU official on Tuesday.

"There is a strong preference by many members of the Eurogroup to
use the ESM, but in technical terms it depend on the [ESM's] entry into
force," the official said.

"No one is ruling out the EFSF," he said.

https://mninews.deutsche-boerse.com/...news.com&sid=1

[PaddyJoe]

Interesting story from Reuters this evening on how Spain's deficit figures are going to be handled:

Reuters) - The European Union is working on a formula to limit the impact on Spain's public deficit of a bank rescue worth up to 100 billion euros by issuing very long loans at very low rates, a senior EU official said on Tuesday.

Obviously this is where all the speculation about longer maturities for Irish bailout loans is coming from.
http://www.reuters.com/article/2012/...8HJGHJ20120619

[ang]

Interesting story from Reuters this evening on how Spain's deficit figures are going to be handled:


Obviously this is where all the speculation about longer maturities for Irish bailout loans is coming from.
http://www.reuters.com/article/2012/...8HJGHJ20120619

Lots also about allowing EFSF/ESM bond buying programme but conflicting reports on that.

Meanwhile back in Spain - Spain pharma sounds alarm on regional debt threat -

* Regions run up 1.5 bln euros debt to drug firms since Jan. 1

* Drug consumption to fall 15-20 pct by end-2012

* Latest deficit-cutting measures will cost sector 3 bln euros

* Firms want government framework to invest for future

http://www.reuters.com/article/2012/...8HJETI20120619

[C. Flower]

Spain announces another bank audit coming in September. So then we find out just how wrong this first one was

62 billion euro, current estimate from two stress tests done today - but up from 1.6 billion euro, which was the last estimate.

Spain stress test: adverse scenario GDP -6.5%, house prices -26.4% & sees 55-60% peak to trough house price fall, banks need 6% core capital

[Dr. FIVE]

Our policy is to separate bank debt from public debt says Noonan who has us fooled all along it seems

[PaddyJoe]

Our policy is to separate bank debt from public debt says Noonan who has us fooled all along it seems

I''m sure Luis de Guindos will drop everything this evening at the Finance Minister's meeting and schedule a one on one with Noonan to pick his brains.

[DCon]

62 billion euro, current estimate from two stress tests done today - but up from 1.6 billion euro, which was the last estimate.

dodgy accounting at best

The expected loss is offset by EUR 98 billion of exiting provisions (which will have to be offset by something and if deposit outflows continue then this merely accelerates the under-capitalization); and
New profit generation of EUR 64-68 billion seems remarkable for a banking segment so tied to its sovereign and entirely bust itself
It seems clear that adjusting these for any sense of reality means the real loss (or capital deficit) will be well north of the EUR 100 billion assigned to the country.

http://www.zerohedge.com/news/what-o...t-spains-banks

[ang]

Olli Rehn says Spanish banks bailout "conditionality" will be focused on banking sector.

For once I call on Enda, Michael, Eamon and Lucinda to don the Green Jerseys and come out fighting for Ireland WE are the home team whom You are PAID and duty bound to fight for not the EU.

[DCon]

Olli Rehn says Spanish banks bailout "conditionality" will be focused on banking sector.

For once I call on Enda, Michael, Eamon and Lucinda to don the Green Jerseys and come out fighting for Ireland WE are the home team whom You are PAID and duty bound to fight for not the EU.

Our EU loving government will do nothing.

Spain will get a better deal.

Economy minister Luis de Guindos said yesterday that Madrid would formalise its EU loan request “in the next few days”, with the details of the deal being confirmed at the end of July.

Spanish prime minister Mariano Rajoy has said the deal will not carry conditions affecting government macroeconomic policy.

On Wednesday, finance minister Cristóbal Montoro upbraided opposition politicians for describing the loan as a “bailout”.

http://www.irishtimes.com/newspaper/...318455551.html

[C. Flower]

Massive demonstrations against the "Rescate" shown on Euronews, yesterday.

[DCon]

More special treatment?

SPAIN SAID TO WEIGH IMPOSING LOSSES ON JUNIOR BANK BONDHOLDERS

BURDENSHARING IS PART OF AGREEMENT ON BANK BAILOUT.

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