Wednesday, June 20, 2012
Chinese now bailing out Euro property
IMF reserves pumped up by Chinese pledges
"The size of the International Monetary emergency fund to rescue bankrupt economies will rise to $456bn, thanks to a $43bn pledge from China at the G20 summit in Los Cabos, Mexico, this week". "It now appears virtually inevitable that Spain will require a sovereign bail-out – possibly very soon" said Jonathan Loynes of Capital Economics. Spain's banks have been laid low by a property crash leaving them with almost €200 billion in "problematic" loans, according to the Bank of Spain. A detailed audit of Spain's banks has been delayed until September to gather more information on lenders' loan books, although an initial estimate of how much extra capital the bank ing system needs will be published this week. (my guess is €325bn - anyone else guessing?).
2 thoughts on “Chinese now bailing out Euro property”
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drewster says:
Alan – Are you guessing the initial estimate which will be published this week, or the amount that the banks really need? The latter figure will be much higher, obviously….
alan says:
This is the amount they will require to fix the mess. Next week will see an announcement of a lower sum.
Farage said they needed another €300bn Euros. I think he was being conservative – he has some good information leads to go public.
I’m wondering why Gold hasn’t sprinted higher. All the signs are there that the presses will get hot soon.