The results of independent stress tests of the Spanish banking sector
will be published on 28 September.
But previews are already being sent to the country's financial
institutions.
It seems likely that the Spanish government has already put in place
economic reform plans that would allow it to apply for a bailout immediately.
Spain's banking sector needs recapitalising, and much of the money would
come from 100bn euros in European Union funds already pledged by eurozone
finance ministers in June.
It seems
likely that the bail out would be in the region of 75-80 billion Euros
Time and
again we are seeing reports coming from the Banking sector where massive losses
have been established and yet it would appear nobody was monitoring these
developments.
It is all
rather reminiscent of the old variety act where a performer started to spin a
sequence of plates as long as he could keep running and adjusting the spinning
plates all was well but as soon as he stopped the whole scenario collapsed. So
it is with the Banking system.
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