Government action means Sareb avoids having to increase capital

 Government action means Sareb avoids having to increase capital

The government have changed the rule that the latent losses detected during the continuous inventory of the portfolio no longer impact on results and can be addressed against property. Thus, Sareb will add to their 950 million in capital and the 1,400 million of subordinate debt, 2,300 million which it will recover from previous accounting provisions and which now can be counted as their own resources.

The company, of which Jaime Echegoyen is president, will have, therefore, almost 5,000 million euros of resources with which, only at the end of the term, it should be able to address the losses generated.

This change of rules does not imply that Sareb will show a profit. The firm has important financial spending and operational responsibilities including hundreds of millions in IBI and IVA.

 

 

 

 

 

 

 

Photo: El Mundo

Iberian Property logo Iberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!