The fear of the minister of finance in front of the debt trillion

The fear of the Minister of Finance in front of the debt trillion

Seat of the Bank Popular in Madrid. Image: Luis Garcia / CC BY-SA-3.0 it

In the balance sheets of the banks, many lazy loans dune, more than a third in Italy alone

It has been done in the official Europe as if the financial and banking crisis be over. However, at the latest with the rescue of the Italian Monte dei Pashi, which should not exist anymore after the banks’ guidelines, the topic was shaking again at the turn of the year. The fall comes near and it meets with Italy the third grobe Euroland. The country has long been the time bomb in the euro area because of its high debt and the political permanent crisis.

That the traditional bank is not the only one in the country, which is rich in lazy loans, most recently shown the rescue of two local banks in northern Italy. The funeral rescue game at the expense of taxpayers goes on. Since you can escapate in Rome and Brussel, it could come to a domino effect on a flatbrand, they actually turned on the settlement guidelines, but new backpounds are always opened to roast extra raws for Italy. Improvements are not the rule, but the exception. The plural is not applicable. Only in one case was popular with the Spanish Banco Popular – even halfway – for the first time a bank.

At the meeting of the Finance Ministers (ECOFIN), the lazy loans were treated again these days. Also officially, it is believed that just under a trillion of lazy loans in the balance sheets of the European money alley. With scatzt 360 billion euros, the almost 700 Italian banks should keep the big part of the lazy cake. Whether these numbers are right is questionable. Again and again it could be observed that suddenly huge punches appear in the finances, of which no one wants to know something.

The Ministers of Finance have decided now "Action plan", with which you want to reduce the lazy debt mount as soon as possible. "The Action Plan for Non-Pouring Loans adopted today is a gross step to tackle the problem", Commissioned Commission Viceprasident Valdis Dombrovskis on the edge of the meeting. One just wonders why that did not happen long ago.

Lazy loans should continue to be outsourced in so-called Bad Banks, as recently in Italy again. That does not mean other that the loads from private money houses continue to be flawed on the taxpayers. Striking is that it remains pretty quiet with all the planes, who should adhere to the losses. But it was agreed on a new name for lazy loans to disguise the advances a little more. One speaks now of "Non Performing Loans" (NPL).

For trade with such NPL, a secondary market should now be created. Nothing exact woman, because the European bank work (EBA) is expected to set up specifications for dealing with NPLs and issue general guidelines for their handling in one year. By the end of the year, the EU Commission is intended to design a concept for the basic national Banks banks, which should then take lazy loans and manage. It is also spoken by the constitution of land-specific collecting societies, which in turn can be converted later in bad banks.

A pan-European Bad Bank should not give it how it was still demanded in the early year. That was awarded in April. The Federal Republic, represented by Wolfgang Schauble, contradicts every transaction that looks like a communitization of debts. A European Bad Bank was "as an attempt to communicate the loads of banknation renovation", to be misunderstood, Schael said.

Who is responsible for the decision to handle the Spanish bank Popular?

However, it is also interesting that a dispute has already broken out of that, who is liable for that the banking processing mechanism (SRM) has decided at the beginning of June to handle the Spanish popular. A lawsuit rolls on. EU Commission and the European Central Bank (ECB) – in which banking supervision is established – are obviously concerned. They relied Spain last Friday "intense", which risks can arise from dispute resolutions.

In front of the ECOFIN meeting, Spain had a precautionary liability of itself. Minister of Economic Affairs Luis de Guindos pointed out that all decisions were made by the Scrap Body (SRB) and therefore "Will the Spanish taxpayer pay no euro". The Spanish Rescue Fund Frob only implemented the decisions of the SRB. At the demand of journalists, the minister also explained, so far no idea of what buzzing it will go.

The catch is not shared in Brussel but not. Dombrovski speaks of a European decision, which is why the courts still had to determine who ultimately liable for seclusions. That it was allowed to give that, obviously nobody in doubt. The complaints of the actions and holders of subordinated bonds, which have lost all the money, are aimed at different directions. There were criminal charges against the boss of the bank. The law firm Cremadas & Calvo-Sotelo represents 1200 out of about 350.000 small investors. This lawsuit is directed against the settlement body and will be on the 7. August submitted before the deadline so that further damaged can be followed. The Consumer Protection Organization OCU, which so far represents 17,000 concerned, also attributes to the Frob in front of the National Court in Madrid.

What gross investment funds make is still unclear. An association, to which the rough investment company PIMCO attended, had first turned to the European Parliament. Was challenged to question the German boss of the Settlementgremium Elke Konig, because it is about a billion euros. They doubt the transparency. Refer to the fact that documents on the basis of which the settlement was decided did not have been published.

In fact, Konely hides behind the "confidentiality" During your survey. The document of the Economic Support Company Deloitte, which should have been the basis for the settlement, will not be published. In Spain, you are angry that the SRM guidelines in Italy were not applied, making the small investors who were asked to pay in Spain. Now the Federal Finance Minister also criticizes the different interpretation of the criteria. He warned a review with colleagues from Austria and the Netherlands, because the differences are "difficult to explain". But one wonders why so many hindfuls were installed in the guidelines.

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