(7 August 2012 – Europe) Spain has put a new plan into action, creating a new asset management agency, or “bad bank”, to deal with the toxic assets that have led to many Spanish banks seeking a European Union (EU) bailout.Spain’s economy minister said when the government approves the new law, the toxic assets – expected to total €200 billion (A$234 billion) – will be segregated from the banks, and dealt with by the new agency.
Luis de Guindos said on Sunday in an interview with newspaper ABC that the law is up for approval on 24 August.
The EU is to provide up to €100 billion for banks struggling from non-performing loans, foreclosed property and other unwanted assets resulting from the collapse of Spain’s real estate market.
Leading Spanish banks, such as Banco Santander, are not expected to need help.