Sareb will reach its sales target of 1500 million Euros.

Sareb will generate a business volume of at least 1500 million Euros this year, reaching the target advanced by the Minister of Economy at the beginning of the year. “Right now, we are above the 1200 million Euros of joint business volume. The 1500 million Euros will be reached”, Walter de Luna, general director of the company, indicates. From the earnings accounted for until now, between 700 and 800 million Euros originate from the portfolio of credits to developers and the rest from real estate assets. The disinvestments, in average, are being made with earnings.

The bad bank, which started from scratch one year ago and finished the reception of its 200.000 loans and properties in February, has multiplied its commercial activity thanks to a better knowledge of its assets, among others. This analysis has allowed it to refine its price policy, considered too rigid by the troika at an early stage. “We had received assets which we did not know in depth. While the commercial policy was being designed, we have dealt with individual buying requests. Some have interpreted this transition process as rigid”, he describes. ”We have explained our price policy and our business plan with total transparency and we believe that it has been clarified and understood”, he concludes. The complete report of the last test by the IMF and Europe on the financial system will be known in November, but the provisional conclusions are more positive with Sareb that the previous studies.

The executive confirms that the bad bank will not be financial burden on the tax payer. The 2200 million Euros contributed to the capital will be repaid to the State and there will be no contingencies in the debt guaranteed by 50.000 million Euros issued by Sareb.

“The cost for the taxpayer would occur if it is not possible to pay the debt and the State needs to put in more money. But with the cash we are generating, we are in a very comfortable position”, De Luna stresses. From his point of view, the level of activity of Sareb will allow to take care of the debt and reimburse the capital. “We are sure it will not be necessary to provide more money and that there will be no cost for the tax payer”, he declares.

As for the perception that Sareb is the reference in real estate prices, the company insists: “This is far from reality. There are other actors which are more powerful to move the market. I fell much more a victim than a leader”, he points out.

Within this market, land continues to be one of the more troublesome assets, although De Luna considers that it is necessary “to demystify land”. The land ready to be built is “fairly ready cash”. In fact, Sareb is finding buyers for this land (Spanish developers or investors that acquire portfolios). “The residual land remaining does not bother us much”, he explains.

44