Spectator on facebook

Spectator on facebook

Analyst says Slovakia's collateral for Spain may exceed €1 billion

The planned eurozone loan to Spain and the related collateral may be a burden on Slovakia's GDP of 1.06 percent or 1.22 percent, depending on whether Spain also provides collateral on the loan it gets, an analyst told the TASR newswire on June 11. The loan to Spain from its eurozone partner nations could be as much as €100 billion. "We assume that funds in the upper region of the preliminarily approved aid will be provided to Spain, which means €80-100 billion," said Poštová Banka analyst Dana Špacírová. She explained that Spanish banks need €50-60 billion for their recapitalisation, as estimated by Fitch Ratings, while the proposal also counts on providing a safety buffer for the future. Slovakia's collateral is estimated to be about €1-1.2 billion, according to the analyst. "I don't believe that this aid has the potential to resolve [Spain's] problems. I see Spain's main problem consisting in its inability to grow without increasing its debt," Kamil Boros, an analyst with X-Trade Brokers, told TASR.

The planned eurozone loan to Spain and the related collateral may be a burden on Slovakia's GDP of 1.06 percent or 1.22 percent, depending on whether Spain also provides collateral on the loan it gets, an analyst told the TASR newswire on June 11. The loan to Spain from its eurozone partner nations could be as much as €100 billion.

"We assume that funds in the upper region of the preliminarily approved aid will be provided to Spain, which means €80-100 billion," said Poštová Banka analyst Dana Špacírová. She explained that Spanish banks need €50-60 billion for their recapitalisation, as estimated by Fitch Ratings, while the proposal also counts on providing a safety buffer for the future. Slovakia's collateral is estimated to be about €1-1.2 billion, according to the analyst.

"I don't believe that this aid has the potential to resolve [Spain's] problems. I see Spain's main problem consisting in its inability to grow without increasing its debt," Kamil Boros, an analyst with X-Trade Brokers, told TASR.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

12 places where you can see the works of one of the best medieval wood carvers Photo

The works of the renowned Master Paul are not limited just to Levoča.

St Geirge Curch in Spišská Sobota

Ukrainian caught beauty of Nitra in video Video

The city under Zobor is beautiful also from a bird’s perspective.

Heatwaves to continue in Slovakia over the following days

More than 40 people collapsed due to hot weather on Thursday.

Foreigners: Events around Slovakia Photo

Tips for performances and other events in the Slovak regions between July 21 and 30, including a castle festival, a parkour meeting, a hip-hop dance and music festival, a festival of minorities, a special run,…

Onyx will perform at the Legits Blast event in Banská Bystrica