SPAIN DAYBOOK: IMF Says Banks Need 10 Years to Sell Assets

Spanish banks need between seven and 10 years to sell repossessed real estate assets, the International Monetary Fund said in a report published overnight.

All times in CET (ET+6)

WHAT TO WATCH: -- The yield on Spain’s 10-year bond rose to 6.51 percent yesterday, the biggest jump since January, as investors bet a 100 billion-euro bank rescue won’t be enough.

ECONOMY: -- Standard & Poor’s Ratings Services yesterday said Spain’s request for a bailout for its lenders “has no immediate effect” on the nation’s BBB+ credit rating.

EQUITIES: -- Banco Sabadell doesn’t plan to use European bailout funds, Chairman Josep Oliu said in an e-mailed statement yesterday. -- The euro region’s temporary bailout fund may help Spanish banks by giving them bonds that could be used as collateral, a step used to help Greek lenders since April, a European official said yesterday. -- Fitch yesterday downgraded Banco Santander and BBVA long-term issuer default ratings to BBB+ from A with negative outlook.

To contact the reporter on this story: Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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