21/05/2014 – Expansion
The new regulation being forged by the Bank of Spain, once more raises the discussion upon the value of Sareb´s assets (over 200.ooo loans and properties) which the bad bank acquired from bailed-out banks for €50 billion.
The most questioned remains the price Sareb paid for the assets as many claim it was inflated and disagreed with market prices of that time. Moreover, real estate prices have not evolved as expected.
Fixed value of the asset transfer was defined by the stress test by Oliver Wyman from 2012.
The loan portfolio of Sareb also raises concern as there is no guarantee the money will be recovered. The bad bank acquired it with a 47% discount.
Although the new law will surely affect Sareb´s annual results, the firm has got a pillow of its own funds saved for such stressful situations and possible falls in property prices. The bad bank has always denied that.
Original article: Expansión (by M. Martinez & J. Zuloaga)
Translation: AURA REE