Wednesday, June 20, 2012
Chinese now bailing out Euro property
"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 â€“ possibly very soon" said Jonathan Loynes of Capital Economics. Spain's banks have been laid low by a property crash leaving them with almost â‚¬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 â‚¬325bn - anyone else guessing?).