| CATEGORY: INTERNATIONAL ECONOMIC |
Wed 18 Jul 2012
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LONDON (SHARECAST) - Spanish Finance Minister Luis De Guindos told Congress on Wednesday that the European Commission (EC) has not allowed the conversion of preference shares and that there are limited solutions once public funds are received.
De Guindos explained that Europe is imposing write-downs of preference shares in order for a bank to receive public funds, and not only when European funds are used.
De Guindos said that preference shares were issued under the prior government administration and that unfortunately changes to legislation will not be applied retroactively.
De Guindos said that the Spanish economy will contract between 1.5% and 2% this year but expects the figure to be closer to 1.5%.
MD
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