The stock market in Madrid. (Efe)
Enrique Utrera 06/12/2012 (06:00 AM CET)
The news of the European aid to Spain’s banking sector on Saturday has not helped calm markets. On Tuesday, the Spanish risk premium hiked to levels above 530 basis points, as many uncertainties remain regarding the banking rescue.
Two key issues that need be answered include the number of banks that will receive part of the financial aid, which was promised to the Spanish government from the Eurozone finance ministers, and the final amount that will be needed in order to recapitalize the Spanish banking sector.
The amount promised by the European Union adds up to €100bn, although the Spanish government may decide to request a lower amount, depending on the results from the independent valuations now being conducted by the international consultants Oliver Wyman and Roland Berger, which will be published on June 21.
Banks at different speeds
A conclusion that can already be drawn, however, is that the difference between banks will be larger than ever and the entities in the sector will move at three different speeds.
First, there are the two largest banks, BBVA and Santander, whose rating was decreased by Fitch on Monday, which are not expected to receive any of the EU money.
Second, there is the Catalonian bank CaixaBank and other medium-size banks that may be forced to receive help, although many of them are reluctant.
Third, there are banks that are certain to receive this aid, including Bankia.
This article was translated and edited by Stina Lunden.
A longer version of this article is available in Spanish here.
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