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.

Get daily Slovak news directly to your inbox

Top stories

Milan Mazurek and Milan Uhrík in the foreground are significant faces of ĽSNS leaving the party

Far right splits: prominent faces leave after Kotleba changed statute

Analyst says that strengthening of extremists is unlikely.

18 h

Worse-off districts in Slovakia should undergo another round of testing

It is necessary to carry a negative COVID-19 test result from January 27 to at least February 2.

23 h
Igor Matovič celebration his election victory on March 1, 2020.

It was a long time ago and it never happened anyway

How much of the present will be intelligible through the kaleidoscopic lens of digital media in just a few years – or even months?

18 h