BBVA refinance the 10% of the loan portfolio in Spain

Doubts about the veracity of bank balance sheets of Spanish institutions became an epidemic that ended with its credibility. And rightly so, at least for most of the sector, which hid delinquencies with refinancing that sought to contain the number of bad debt and provisions. The new dome of the Bank of Spain decided last October to hold institutions accountable more detailed on refinanced loans to prevent cover-ups.

The first to apply the new regulations has been BBVA. The entity has 28.981 million refinanced in all countries in which it is present. Sources of the Bank itself admitted that of the total amount, 9,000 are qualified as non-performing, according to the Bank of Spain regulations. Of them, 5.8 billion have their origin in Spain and the rest out.

6,000 million refinanced mortgages for private individuals are

With regard to the nearly 29,000 million refinanced, the majority is also in Spain: 19.570 million. This figure represents 10% of the total loan portfolio. The amount is relevant because the crisis is already going for the fifth year in Spain. The rate of default of the BBVA in Spain is 6.9%. Bank admits that in the case of retail customers the purpose of refinancing "is to avoid non-payment due to temporary liquidity problems, with structural solutions that will not increase the debt and to facilitate your payment". The Bank ensures that in any case, the refinancing "is a way of delaying recognition of losses".

The 20 billion that are not non-performing loans, 22% correspond to promoters, 37% companies are not related to the brick, 30% to mortgages for individuals and 11% to other activities. José Carlos Díez, Intermoney Chief Economist, believes that "in an economic depression as the Spanish, that will destroy 20% of employment, is necessary a plan to stabilize the debt of the families. In Spain, 9% of the mortgages, about 500,000 households, are vulnerable and it will have to be restructured."

BBVA has divided loans into three categories: normal, when they are aware of special tracking payment; substandard, "because there are material questions of a possible non-compliance", and dubious, "when the client is aware of payment, but there are doubts that may violate the terms of the refinancing".

Finance; Economic; Business

Finance; Economic; Business

Title Post: BBVA refinance the 10% of the loan portfolio in Spain
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