BRUSSELS, Sept 28 Spanish banks'
recapitalisation needs are well within the amount of money
earmarked for that purpose by euro zone countries, which will
allow the process to go on smoothly, the chairman of euro zone
finance ministers Jean-Claude Juncker said.
Spain announced on Friday that according to an independent
audit of the country's 14 main banks by consultancy Oliver Wyman
its banks would need 59.3 billion euros ($76.3 billion) in extra
capital to ride out a serious economic downturn.
The worst-case estimate, which does not take into account
tax credits or future bank plans to raise their own capital, is
based on a scenario of a 6.5 percent contraction in Spain's
economy between 2012 and 2014.
The audit said half of the 14 banks need more capital, with
a 49 billion euro shortfall for banks that have already been
"I am comforted by the fact that the total capital shortfall
of the Spanish banking sector comes out at slightly less than 60
billion euros," Juncker said in a statement.
"The final State aid provided to Spanish banks will be lower
than the reported capital shortfall, given measures to be taken
by the banks in accordance to their recapitalisation and
restructuring plans," he said.
Euro zone countries agreed in July to offer Spain up to 100
billion euros in a loan specifically for the recapitalisation of
the banking sector, hit by the collapse of the real-estate
"The assessment shows that the total financial assistance
agreed in July should be more than adequate to cover the final
capital needs, including a comfortable safety margin," Juncker
"It should ensure that the recapitalisation process of banks
can proceed efficiently and in accordance with previously agreed
timelines," he said.