Spanish lenders have 135 bln euros in bad property assets

4th February 2011, Comments 0 comments

Spain's banks had a total of 135 billion euros ($185.5 billion) in bad property assets at the end of 2010, according to a calculation by AFP based on information provided by the lenders.

The nation's seven main banks held 45 billion euros in troubled real estate while the 15 of the 17 regional savings banks that have so far published their figures held double that amount, 90 billion euros.

The Bank of Spain has asked all 17 regional savings banks, which account for about half of all lending, to supply it with details of their exposure to the collapsed real estate market.

The savings banks are at the heart of market fears that Spain could need a bailout like the ones granted Ireland and Greece last year.

If the savings banks are uneble to cope with losses from their exposure to the collapsed property sector, investors fear they will need massive government help.

Caixa Ontivent and Caixa Pollensa are the two savings banks which have yet to detail their exposure the real estate sector.

Of the 90 billion euros in bad property assets held by the savings banks, 29.4 billion euros are non-performing loans, 27.5 billion euros are "substandard" loans at risk of default and 33.1 billon euros are related to real estate assets the banks have in their hands, mostly from seizures, which they can not sell.

Of the 45 billion euros in bad property assets held by the seven banks, 13 billion euros are non-performing loans, 12.6 billion euros are "substandard" loans at risk of default and 19.4 billion euros are seized properties they can not sell.

Banco Pastor and Banca March have not yet provided their figures since they have not published their annual results.


© 2011 AFP

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