Spain Business Brief - Monday July 26 2010

Spain Business Brief - Monday July 26 2010
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By h.b. - Jul 26, 2010 - 1:14 PM
Spanish markets are calm following the publication of the bank stress tests

EFE archive

The markets have reacted with calm today open again after the publication of the stress tests on the banks last Friday evening.
However leaks and doubts about the way the tests were carried out and differences between countries procedures have watered down the impact of the exercise. Elena Salgado, Minister for Tax and the Economy, has said that Spain was more transparent than any other country.
Banks and Savings Banks here will have access to an extra ‘cushion’ of 20 billion.

Meanwhile the Banco Popular has announced a correction in its risk strategy, and says that the losses for the devaluation of its real estate assets are 31.8% lower than published. The bank has lamented its inability to revise the numbers before publication.
It has also emerged today that six German banks hid data of their sovereign debt on their portfolios from the stress test. German markets are being hit today on that news.
The Governor of the European Central Bank, Jean Claude Trichet, has meanwhile said he supports more cuts in spending and tax increases to be introduced to control the debt problems in the European Union.

The number of mortgages issued in Spain during May fell by 2.9%, compared to May last year, after four months of increases. The data comes from the National Statistics Institute which says that 55,755 mortgages were signed during the 5th month of the year. The average mortgage was 4.4% lower than a year ago at 114,900 €. The fall is a surprise given it was for a month before the IVA increase came into effect.
Mortgages have ended their cycle of lower rates, and have started to cost more again. Those who have their annual revaluation using the Euribor in July will be the last to see a saving, with the rate expected to end the month at 1.37%.

Following the cut back on civil servants wages, now the attention is turning towards the costs of official cars. Central government has yet to cut back on 1,090 vehicles, but when the regional governments are added to that the number reaches 2,528. Some of the regions have started their cuts – Madrid from125 to 77, Galcia from 143 to 84, La Rioja from 20 to 16 and Cataluña from 96 to 84. However as yet no cuts have been announced in Andalucía with 299, or in Murcia with 184.

Those owed money by Viajes Crisol, which is now under bankruptcy protection, have a month to reclaim the money owed. They can do so in an office of the travel firm or by email. After a month a list of creditors will be published along with a provisional report on its status.

France and Spain have joined forces to face the EU Commission in demand of a new policy to control agricultural imports from third countries. It’s thought that Italy could join in the demands for stricter controls on such imports which are seen to greatly damage EU member states.

The number of complaints regarding frauds in games, competitions and promotions where your mobile phone number is taken has increased, according to the FUCI, the Federation of Independent Users and Consumers. They say complaints have increased five-fold in the first quarter of the year at 1,354.
Many cases involve the mobile number then being added, without request, to a list for automatic messages, which are then charged to the users’ bill.

And finally,
Lorry drivers have asked the Foreign Ministry for help with the electronic tolls to be charged on Portuguese roads. They claim the system is chaotic as manual payments are not allowed and drivers have to have a device installed on their windscreen wipers. The Spanish lorry drivers claim the system, which comes into effect on August 1, will stop the free circulation of people and goods.

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