The economic effort on the part of the State to rescue the financial sector goes far beyond saving Bankia. In total, The Fund for Orderly Bank Restructuring (FROB) allocated around 58.6 billion euros in aid to banks and the bad bank or Sarebwhose foundation has its origins precisely in helping to clean up the billion-dollar slab of toxic assets that clogged the balance sheets of the entities and generated distrust in the markets about the true health of the national financial system.
The committed money is an important toll that continues to be discounted today, since the State has recovered only 10.67% of these funds or a total of 6,257 million euros. His intervention took place through different actions.
On one hand, committed 56,545 million in recapitalizations of entities implemented through direct injections and assumption, consequently, of ownership of shares; but it also did so by covering issues of preferred shares and contingent convertible bonds, better known as CoCos. On the other hand, it has covered up to 2,055 million euros for risks assumed when it awarded entities previously rescued in public tenders to other banks.
The figure includes the payment, for example, of compensation for breakdowns of commercial alliances or joint ventures and provisions for impairment of assets or credit portfolios (EPAs). In the creation of the bad bank, which was originally born as a semi-public company and which in 2022 became controlled by the State, it committed 2,072 million.
The FROB has managed to recover all of the money spent only in relation to the rescue of three entities – Banca Cívica, Liberbank and Caja3 – and its means of obtaining additional funds are limited almost exclusively to the participation it preserves in CaixaBank. Sareb was founded with an expiration date of the end of 2027 and had to liquidate its portfolio and business beforehand, although it is not ruled out that its activity will be extended, but the greatest value and potential for revaluation is concentrated in the bank.
For their part, Catalunya Banc, Nova CaixaGalicia and Banco de Valencia stand out among the rescues since which the State suffered the largest deficit. To Catalunya Banc, the FROB allocated more than 12,500 million of which it recovered 782. In Nova CaixaGalicia, it inoculated more than 9,300 million and rescued 783. In Banco de Valencia, it injected almost 5,900 million euros and recovered nothing.
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