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Spanish banks face up to 10 billion euros in extra provisions - Economy Minister
June 18, 2013 / 10:32 AM / 4 years ago

Spanish banks face up to 10 billion euros in extra provisions - Economy Minister

SANTANDER, Spain (Reuters) - Spain’s Economy Minister Luis de Guindos said on Tuesday that Spanish banks would face extra provisions against loan losses of up to 10 billion euros (8.53 billion pounds) over the next two years to meet new rules on loan refinancings.

The provisions would leave banks with a capital shortfall of about 2 billion euros, based on estimates from the Bank of Spain, de Guindos said at a financial conference in northern Spain.

The Bank of Spain has asked banks to overhaul how they deal with refinanced loans to borrowers that have gone sour, and classify more of these loans as bad debts, which requires more provisioning.

Reporting by Andres Gonzalez, Writing by Sarah White

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