28/10/2014 – Expansion
Spain’s Management Company for Assets Arising from the Banking Sector Reorganization, also known as Sareb, has transferred a volume of 10.900 REO properties from January to September 2014. As its chairwoman Belen Romana (pictured) pointed out, the performance is much better than predicted as it averaged at 40 units sold every day.
At her hearing in front of the Economy Committee, Mrs Romana confirmed the plan of Sareb of repaying €3 billion indebtness this year, 50% more than in 2013.
During the one and half year of its lifespan, the bad bank has paid back more than €3.6 billion, equal to 7% of the total issued debt. At the same time, it paid almost €1.64 billion in interests.
In the first half of the year, Sareb earned nearly €1.7 billion and its Ebitda rose to €429 million. During her speech, the chairwoman put the emphasis on the fact that this strong cash flow allowed the firm to pay €100 million in monthly fees to the transferring entities.
Contribution to Success at the Stress Test
Belen Romana also assured that Sareb has modestly contributed to the good result of the asset quality review and the stress test of all eurozone entities conducted by the European Central Bank (ECB) and the European Banking Authority (EBA). And if it hadn´t been to the bad bank, they could not remove the toxic assets from their balance sheets.
Since its creation, Sareb has been meeting its main target (i.e. ‘sell & sell more’) and therefore adding to vivid movement on the market. The bad bank is said to have atrracted attention and change the perception of the Spanish real estate among investors.
Original article: Expansión
Translation: AURA REE