Spain Said to Plan to Buy CoCo Bonds From Banks in Revamp
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Spain will give struggling banks more time to take their share of 50 billion euros ($65.7 billion) in real estate charges if they agree to merge with other lenders.
Banks will have until the end of May to present merger plans that will mean they get two years instead of one to make additional provisions for real estate piled up on their balance sheets, Economy Minister Luis de Guindos said at a Madrid news conference today. They will also be able to offset charges for the loss in value of the assets against capital instead of profits, and receive financing from the government’s bank rescue fund, he said.