Spain Business Brief - Friday June 26 2009
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By h.b. - Jun 26, 2009 - 1:18 PM
Cheaper but fewer mortgages in Spain

The latest fall in the Euribor rate, used to set mortgages in Spain, to 1.62% will reduce the payment of an average mortgage that gets its annual revision this month by 300 € a month. The daily rate for the Euribor is currently at an all time low in its ten year history at 1.515%.
Meanwhile the latest data for the number of mortgage credits issued in Spain shows a fall of 41.9% year on year in April. The last time such an annual fall was seen was in December 2001.
During April 50,288 new credits were signed, with an average loan amount of 115,442 €, down 18.4% year on year.

It comes as the number of new homes built in the country fell by 68% between January and March this year compared to last. 31,244 properties were started over the first quarter of the year.
The number of officially protected properties constructed however was up by some 50% at 15,823.

Minister for Tax and the Economy, Elena Salgado, has said she accepts that a special commission be used to supervise the new 99 billion € fund being established to help banks and savings banks in Spain, but she has again denied cancelling the regional veto which stops mergers across regions. It comes as last minute talks have been held with the PP on the rescue package. Banks which take advantage of the funding will have five years in which to pay it back.

A statement from the UGT union claims that 1,600 jobs are to be lost at the Figueruelas plant in Zaragoza with the change of ownership of Opel. The new owner of the European operations of General Motors is reported to be cutting production at the plant to 320,000 units a year, 130,000 fewer than the total capacity.

Sales of rolling tobacco have soared by 80.3% over the first five months of this year compared to last, according to numbers taken just before the government announced increased duty. 80% of the price of cigarettes in Spain now corresponds to taxes.

One of the original founders of Greenpeace, Patrick Moore, has called for more nuclear power stations in Spain. He says that nuclear power is clean and sustainable, and notes that no nuclear plant in the west has caused any damage to the population. His comments come as the debate on the future of the Garoña nuclear plant in Burgos continues.

Pricewaterhouse Coopers has taken on Jaume Matas as their new assessor in New York, choosing him because of his experience in Spain as Environment Minister. He will advise the client companies on renewable energy and climate change. It’s understood that Matas got in touch with the company himself ‘to offer his experience’.

And finally,
El Corte Inglés is busy renewing its board and has now taken on José María Folache as a central member of the purchasing unit. He comes from Carrefour, where he was the European Director of the group.

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