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European Commission criticizes ' bad bank ' to remain in losses since 2012

The entity, which absorbed the toxic assets of the boxes, had red numbers of 565 million in 2017

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European Commission criticizes ' bad bank ' to remain in losses since 2012

The European Commission believes that bad bank has improved its gross margin, but recalls that it continues with negative financial results, which requires "greater action" in terms of its administration.

It is not first time that Brussels has put its attention on march of Sareb, which still has 37,875,000,000 in assets endorsed by state. In fact, it has been insisting for years on financial situation of Sareb, which lost 565 million in 2017, 15% less than previous year. This entity received in November 2011 about 200,000 assets worth 50,781,000,000, of which 80% were loans and credits to promoter and 20% real estate, large part soils. These assets were worst that broke savings banks had in ir wallets.

High costs OperativosMÁS Information
  • The bad bank lost almost 600 million last year.
  • The Sareb accelerates exit to stock exchange of its investment company
  • The Sareb sold 14,000 properties in 2016 and will market 1,500 homes per year

The accounts of Sareb are taxed by high operating costs, 683 million, due to taxes of houses, like IBI, expenses of neighboring communities, costs of security and ones of maintenance. In spite of everything, bad bank has accelerated sale of houses in last months, taking advantage of improvement of real estate market. The Sareb also has 77 million of amortization costs. The operating result is positive in seven million, but 541 million of financial expenses and 31 million of taxes, lead to losses. The financial expenses are high, despite fall in interest rates, because part of ir debt is at a fixed price.

The European Commission also points out that "completing" privatization of Bankia, of which state has 60% of capital, would allow "reinforcing" more banking sector. Brussels calls for a speeding up of bank-fund disinvestment schemes in savings banks.

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