By Daily Mail Reporter
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The Spanish government yesterday ordered its banks to set aside an extra €30bn (£24.1bn) to cover losses on reckless property and construction loans.
It marks the fourth attempt by successive administrations since the financial crisis to shore up the country’s ailing banking system.
The provision comes on top of the €54bn (£43.4bn) banks were ordered to set aside in February.
Madrid in April: Thousands of people protested against government cuts aimed at tackling a debt crisis that has pushed the country back into recession
Spain’s prime minister Mariano Rajoy took the action just two days after it nationalised its fourth biggest bank Bankia.
He said: ‘The government wants complete transparency â€" clarity is crucial to end any doubt about Spain’s solvency.’
It is hoped the new package will convince investors that Spain will not have to plough more state money into the banks, and that it will help avoid a humiliating bailout. But the provision is a fraction of what some believe is needed.
The Spanish market fell and government bond yields rose â€" indicating that the markets were unconvinced. Spain’s banking sector was left teetering by the collapse of its decade long property bubble.
Two independent auditing firms will be tasked with valuing the banks’ exposure to the property sector.
The Spanish finance minister Luis de Guindos said Spanish taxpayers â€" already in the grip of a major austerity programme â€" would have to inject less than £12.1bn.
Unemployment in the country now tops 5.6m â€" with one in four people out of work.
Meanwhile, the economic turmoil continued in Greece as its stock market plunged to the lowest level since the 1992 European Exchange Rate Mechanism.
Yesterday Wolfgang Schaeuble, the German finance minister, signalled it was prepared for Greece leaving the eurozone.
He said: ‘We want Greece to remain in the eurozone. But it also has to want this and to fulfil its obligations.’
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I think EVERYONE should prepare to leave the BIGGEST scam and go back to their own houses the world would be a happier place! while 'THEY" are at it 'THEY" can put back in the pot all the slaves stolen money and erase the pseudo debt on 'THEIR" screens.LET"S ALL START AGAIN virtualy.got it.SLAVES to bankers!.
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This greed of the politicians is finally putting paid to the EU, thank goodness.
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