Sareb Earns €3.800 Million & Meets the Targets

11/03/2014 – Expansion

After a slow-motion beginning, the Company for the Management of Assets proceeding from Restructuring of the Banking System, commonly known as Sareb, hastened the sales of loans and awarded property in the second half of 2013 and at the end of the year registered €3.800 million gains.

The numbers “meet the expectations” included in the revised business plan on cash flow generation. The entity chaired by Belen Romana will make the first year performance sheet public after having it approved at the end of March. As foreseen, the result will show losses.

Financial asset management brought about two thirds of the annual revenues, while the rest originated from the REO assets. (…).

Throughout the year 2013, except for managing and selling developer loans granted for more than €250.000, the bad bank shed 9.000 houses for more than  €100.000 each, and by doing so it exceeded the 7.500 unit goal stated in its initial plan.

The first destination for the amount earned by Sareb will be the Government that in turn will repay the nine financial institutions that awarded their toxic assets to the bad bank. (…).

At the moment, debt interests are not being paid to Sareb´s shareholders, private entities, banks and insurance firms that hold 55% of the bad bank, while the Frob owns 45% of it. (…).

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Original article: Expansión (Alicia Crespo)

Translation: AURA REE