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Spain's banks may need 59.3 bln euros

Friday, September 28, 2012 - 01:25

An independent audit of Spain's 14 main banks showed they would need 59.3 billion euros in extra capital to ride out a serious economic downturn. Joanna Partridge reports

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59 billion euros. The amount of capital Spain's troubled banks would need to ride out a serious economic downturn, according to a independent audit of the country's 14 main lenders. Half of those banks don't have enough capital. The good news - the amount is roughly what was estimated. And there's enough money in the kitty to help them out - after Madrid secured a 100 billion euro European bailout for its lenders back in June. The bank review was one of the conditions of that aid. It comes just a day after the government presented its 2013 budget, including more austerity measures. That, and the bank audit are steps Madrid has to take before it asks for a full sovereign bailout. Daragh Maher is from HSBC. SOUNDBITE: Daragh Maher, HSBC Forex Strategist, saying (English): "We kind of got a reasonable budget and it's just kind of laid out the plans. I think most people would accept that what they've committed to under that budget might meet what the EU would want if Spain ever actually formally asked for an aid package. I think that provided a bit of reassurance to the market." Spain's Prime Minister Mariano Rajoy has been delaying asking the EU for an aid package, which would trigger an ECB bond-buying programme that would ease Madrid's painful borrowing costs. Joanna Partridge, Reuters

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