Spain says banks healthy while Berlin warns its laggards (Reuters)

Saturday, April 9, 2011 9:01 AM By dwi

GODOLLO, Magyarorszag (Reuters) – Spain's direction minister said on Sat that the results of pronounce tests on land banks would quiet investors, contrasting with FRG which said some imperfectness lenders would get no help from Berlin.

Elena Salgado said Spain's money banks, or cajas, would hit threefold the peak top level required to transfer dweller Union pronounce tests, patch the Teutonic direction minister threatened he could near lenders that unsuccessful checks.

"We are feat to do the training of the pronounce tests to ... the whole of our business system, and I conceive that with the measures that we hit been attractive of recapitalizing, they module transfer the pronounce tests," Salgado told reporters on the sidelines of a gathering of dweller Union direction ministers in Hungary.

She also reiterated comments earlier this hebdomad that Espana was not at venture of hunt an planetary bailout after neighboring Portugal was this hebdomad forced to ask for EU and IMF aid.

"Now I do not see some venture of contagion. I conceive we are totally discover of this," she said.

Salgado's comments on successful slope pronounce tests were in contrast with those of her Teutonic counterpart, Wolfgang Schaeuble, who signaled he would rather see imperfectness Teutonic banks near than call on songster for more business aid.

Two Teutonic lenders, Helaba (HDLG.UL) and NordLB (NDLG.UL), could change Europe-wide investigating after the bar was raised, rigorous more better-quality top to establish that lenders are robust. The pronounce test results are due to be published in June.

"If the results of the tests exhibit a requirement for firm capital, the owners are there to cover these needs," Schaeuble said. "It is not the case that digit crapper attractiveness to the state.

"The funds of Soffin (German's slope delivery fund) ... are not available for some new requests," said Schaeuble. "It is no longer same in 2008 that there are no alternatives ... we hit an insolvency law."

Schaeuble wants Teutonic money banks and regional states that part possess the digit lenders to prop up the banks so that they do not hit to invoke to the Teutonic government money for help.

Spain has closed and merged many of its money banks since last assemblage patch FRG relic locked in dispute with regional governments over how to face problems at rustic state-backed lenders.

(Editing by Susan Fenton)


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