Spain Coaxes Banks to Merge With Extra Time to Purge Losses
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Spain’s new government gave banks an extra year to recognize losses if they agree to merge, as it tries to overhaul the financial industry crippled by the collapse of the nation’s property boom four years ago.
Banks have a year to make 50 billion euros ($66 billion) of provisions against real-estate assets, according to a decree passed by the Cabinet today. If they agree by the end of May to merge, they get a further 12 months to take the charges and can tap the state’s bank-bailout facility for funds.