Zapatero announces 30-billion-euro fund for Spanish banks

In an interesting move this week, the Spanish government has adopted its first measures to help alleviate the effects of the current worldwide financial crisis. Prime Minister José Luis Rodríguez Zapatero has announced the creation of a 30 billion euros fund to ensure that the availability of credit continues and that deposit insurance will be raised to the sum of 100.000 euros.

It also appears that the European Union has also put into motion a minimum guarantee for bank deposits of 50.000 euros per account across all EU members nations.

What has surprised this author is that this measure, unlike many other nations in the EU, is pro-active rather than reactive. To date the credit crisis has not directly affected Spanish banks due to their minimal exposure to the sub-prime loans. See previous article on Spanish banking.

But Spain is currently facing its own crisis, in regards to increasing unemployment due to the slow down in the construction industry and rising inflation.

Andrew Bellés

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