13 April 2018 – Eje Prime
Sareb is continuing to reduce its debt. The Company for the Management of Assets proceeding from the Restructuring of the Banking System is going to make an extraordinary debt repayment amounting to €889 million, according to a statement issued by the company.
Sareb’s Board of Directors has approved the operation, which is going to be carried out using net cash generated by the business. During its first five years of life, the so-called bad bank has repaid debt amounting to €12,906 million.
When the company was constituted in 2012, it issued debt amounting to around €50,800 million, secured by the Treasury, so as to be able to acquire real estate assets from the nine Spanish banks that received public aid.
To date, Sareb’s debt has been reduced by 25% to stand at €37,875 million. The good performance of the company’s business, which has recorded revenues of €20,700 million during its five-year life, has helped to repay this debt. The entity has reduced its portfolio of assets by €13,602 million, which represents a decrease of 27%.
Original story: Eje Prime
Translation: Carmel Drake