This Thursday marks the tenth anniversary of the banking 'rescue' of Spain

MADRID, 9 Jun. (EUROPA PRESS) -

This Thursday, June 9, marks ten years since Luis De Guindos, then Minister of the Economy, announced Europe's decision to guarantee aid of up to 100,000 million euros to Spain with the aim of cleaning up the financial sector.

Specifically, the decision was made within the Eurogroup, which brings together the economic ministers of the European Union, although Guindos made it clear that the aid would be used only for banking and that the amount committed was the maximum possible figure to request by the Government. Likewise, he explained that the counterparts were applied to the entities, but not to the Government, which would be the one that would set the exact amount of financial aid that it would demand.

The context of this rescue must be placed in a year, that of 2012, in which the "highest levels of instability" were reached in the eurozone, "and, particularly, in Spain", according to the executive resolution authority, the Fund for Orderly Bank Restructuring (Frob) in a report on its activity between 2009 and 2019.

"The uncertainties derived from the new economic recession, the sustainability of public debt and the real situation of the financial sector showed the fragmentation and weakness" of the European monetary union, deepened the body, which channeled European aid to the banking sector.

In Spain, the situation of credit institutions, as well as the economic recession and the deterioration of public finances "worsened during the first quarter" of 2012. Doubts about the solvency of part of the national banking sector "extended to affect their own public debt issues", while the risk premium reached all-time highs, above 700 basis points.

After advancing the request for aid on June 9, finally on the 25th of the same month, Spain made the formal request for financial assistance, since the entities needed recapitalization and the markets could not be accessed under the conditions of that time.

"The public contribution of the necessary resources was essential" in order to guarantee financial stability, defended the Frob, which also pointed out the difficult situation of the Spanish sovereign debt market.

Although the amount disbursed by the EU was 41,000 million, the bank bailout has risen to 58,000 million euros, of which around 6,000 million euros would have been recovered through amortizations, sales of investee entities and remuneration for debt interest, according to the Frob's own data.

The entity that has received the most public aid is BFA-Bankia, with 22.4 billion euros, followed by CatalunyaBanc, with 12.5 billion euros, and Nova CaixaGalicia, with 9.4 billion euros.

THE "HARD CORE" OF BANKING HELPED "THE WEAKEST"

Coinciding with this tenth anniversary, the spokesman for the Spanish Banking Association (AEB), José Luis Martínez Campuzano, pointed out that the EU's financial assistance was "key" to contribute to the financing and 'rescue' of the entities " weaker".

Regarding the return of aid, an issue that has been on the table on a recurring basis for ten years, Campuzano has trusted that the amount will be recovered "as soon as possible", so that the taxpayer can see the amounts contributed by the public coffers.

Asked about a possible current economic crisis, Campuzano believes that Spanish banks could withstand the crisis without the need for a new 'bailout', since the necessary measures would have been taken to avoid it, with a healthy sector, stricter regulations, greater supervision and the change of mentality of the sector itself.