Extracts from the press conference by Joaquín Almunia on restructuring plans of Spanish banks BFA/Bankia, NCG Banco, Catalunya Banc and Banco de Valencia approved by the EC
Type: Summary of press conference
End production: 28/11/2012 First transmission: 28/11/2012
On 28 November 2012, Joaquín Almunia, Vice-President of the EC in charge of Competition, stated that European Commission approves restructuring plans of Spanish banks BFA/Bankia, NCG Banco, Catalunya Banc and Banco de Valencia.
The European Commission concluded that the restructuring plans of the four Spanish banks BFA/Bankia, NCG Banco, Catalunya Banc and Banco de Valencia were in line with EU state aid rules. The in-depth restructuring undergone by BFA/Bankia, NCG Banco, Catalunya Banc will allow them to become viable in the long-term without continued state support. Moreover, the banks and their stakeholders adequately contribute to the costs of restructuring. Finally, the plans foresee sufficient safeguards to limit the distortions of competition induced by the state support.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Joaquín Almunia, Vice-President of the EC in charge of Competition at the press conference
||Cutaway of cameramen
||Soundbite Joaquín Almunia (in SPANISH) saying that the European Commission has adopted today the restructuring plan for four Spanish banks BFA/Bankia, NCG Banco, Catalunya Banc and Banco de Valencia. These plans are in line with the Memorandum of Understanding signed in July of this year between Spain and the Eurogroup. And they are also in line with the EU States aid rules, particularly the rules they applied constituently since the start of the crisis to the financial institutions that received public support.
||Cutaway of the Speakers
||Soundbite Joaquín Almunia (in SPANISH) saying that what they have approved today means that the funds for the European Stability Mechanism can be disbursed, can be transferred to Spain trough the FROB which, as you know is a Spanish fund for banks restructuring the Spanish backstop. Public capitalization for these four banks is very large, 18 billion for the BFA/Bankia, 9 billion Catalunya Banc, 5.5 billion for Galicia Nova Caixa and 4.5 billon for Banco de Valencia. The total amount adopted today is 37 billion Euros.
||Cutaway of the participants
||Soundbite Joaquín Almunia (in SPANISH) saying that if they look at the restructuring plan adopted today, you can see that these banks will become viable again on the medium and the long term, without needing more public support. BFA/Bankia, NCG Banco, Catalunya Banc, the three first banks are undergoing considerable restructuring up to the 31 December 2017, on the basis of the restructuring plan adopted today. They will be focussing their business model on loans to SME's to the retail, businesses, retails banks and they will be working in areas of Spain where they had an historical presence.
||Cutaways of the audience (2 shots)
||Soundbite Joaquín Almunia (in SPANISH) saying that their work is not complete before Christmas, the Commission will adopt decision on the restructuring plans for other Spanish banks which have shown a capital deficit in their stress tests and thus, need public funds for recapitalization. Here, they are speaking about the so-called group two banks, the result of the merger between Caja Duero and Mare Nostrum bank lead by Caja Murcia, Liberbank and Caja3. So, their intention is to adopt decision for these four banks on 28 December 2012.
||General views of the press conference (3 shots)