Well I’m sure as most people must have heard by now the main economies of Europe have agreed a multi-billion euro rescue scheme.
Spain has set aside 100 billion while Germany has a approved a package worth 500 billions and france a further 350 billion. This is a combined sum of 950 billion euros. A bulk of this sum will be used to guarantee lending between the Euro area banks and thus get credit flowing again.These various packages were echoed to a lesser extent by the remaining economies in the Euro area.
Unlike Spain, who’s bank to date have remain robust in the current crisis, although Spain announced a 30bn fund last week, France and Germany will also use these funds to take stakes in the weakening banks, which so far has had a positive effect and can be seen in the rise in the stock market.
This plan follows the UK’s lead by guaranteeing lending between banks and taking a stake in the institutions. It also appears that the US is following in the same direction.
Now how will this benefit us here in the South of Spain? Well quite simply with a return in confidence, banks and other financial institutions will start lending to each other again. This will make it easier for people to get credit and more importantly mortgages. So people looking to buy a property should hopefully find it easier.
Regards
Andrew Belles
2 responses so far ↓
Lucy // October 14, 2008 at 11:18
Very informative and up to date news. It’s time to here something positive.
Phil // October 14, 2008 at 11:38
Its good to see that the financial institutions are united and moving in the same direction. At the end of the day they have to, its the only way salvage the current situation.