Monday, November 3, 2008
Solbes agrees to inform the entities that go to the bottom
With name, but only every four months. With this formula, the Ministry of Economy and Finance has finally decided to publicize the financial institutions to come to Fund Acquisition of Financial Assets, one of the measures that are put in place to provide liquidity to banks, funds and financial credit consumption. Pedro Solbes Mira DEPTH Born: 31-08-1942 Place: (Pinoso) global financial crisis DEPTH See full coverage The news on other websites Websites in Spanish in other languages The sector was against giving publicity to aid Pedro Solbes will, as chairman of the board of the fund, who requested to appear at the Congress in order to provide the names of the entities that come to the auction and the distribution between each of the fund. Will be done every four months, not immediately after the auction. A deadline that the secretary of State for the Economy David Vegara, yesterday described as "reasonable" and that will avoid "stigmatizing" to entities that go. The decision represents a change of approach to the doubts, contradictions and negative, both the Government and the PP, whether or not to publish the list. Publishing has a reputation for cost of the entities, which can be slow if it is not hot. Do not publish the transparency to the process and can lead to suspicion that the difficulties are greater, despite the relatively small amount of the fund. Removing the margarita was reached yesterday at the Ministry of Economy has published in the Official Gazette the ministerial decree regulating the operation of the fund. The decision to inform the Congress of the entities that come to the auctions did not appear, however, in that order. It will be a discretionary decision of the fund and its chairman Solbes. Both Vegara as sources of the ministry stressed that it is "a commitment", it is understood that political. Within the sector, the decision to make public the names, albeit belatedly, has not sat well. The president of the Confederation of Cases, Juan Ramon Quintas, in a recent public event gave the example of the European Central Bank and the Spanish Treasury. Both kept secret the entities it allocated funds or debt. With the Spanish fund should, in his view, the same thing happen "as they are not aid, but the lending of money." In the case of the employer's bank AEB, the answer is that each entity speak for itself, given that there have been different positions. The fact that some entity, such as BBVA, has spoken in favor of transparency, has led the Government to the belief that no worthwhile to take the political cost of not publishing the names, because that position was designed precisely to safeguard to the entities and that the fund be more effective. In order regulating the operation of that fund, with up to 50.000 million. The goal is to provide liquidity to banks through the purchase by the public treasury assets of the entities by the method of auction. The minimum interest rate will not be accepted less than the cost of funding the equivalent of the State, ie in similar time frames. It is that the cost to the taxpayer is zero or even advantageous, regardless of whether to give the fund a temporary increase public debt. Auctions may be buying firm of assets or loans with the guarantee of such assets (repos) and with them the fund will be separate portfolios. At the first auction can go to ballots and mortgage backed securities issued after October 15, 2008 and rated triple A. The deadline is determined at each auction. The repo will go with titles issued after August 1, 2007, must be assimilated and double-A or the term exceeding one year. No entity can hold more than 10% of each of the portfolios of the fund. There will be a first repo auction this month to 5,000 million within two years. The second will be in December, by 5,000 billion to three years.