Concern grew for the stability of Spain's place in the fragile eurozone economy after reports of a rise in the level of bad loans on the books of its banks and word from the government Friday that it may have to revise its 2011 budget deficit upwards for a second time.
NEW DELHI: The government wants to put together a plan to purge the banking system of bad loans, seen as the single biggest hurdle in the way of an investment revival that’s badly needed to push growth. On the table are said to be three possible strategies — asset swaps, a bank-by-bank cleanup and a bad bank. The matter is likely to be discussed later this month, a senior government official told ET. “There is unanimity at the highest level that economic growth cannot just happen on the back of public investment.
Time to breathe a sigh of relief, with resolution of the Greek bailout? Not so fast. Greece is likely to need re-adjustments to its plan  Plenty of challenges remain in the eurozone; PIMCO's El-Erian says Portugal is next . In fact, as Jeffry Frieden and I argue, the resolution of the problems facing eurozone policymakers is likely to be contentious and prolonged.
Ireland may have to revise its annual GDP figures for the past decade following the European commission’s ruling that the majority of Apple’s overseas profits should have been taxable in the Republic, reports The Guradian.
MUMBAI: Banks willing to take a hair-cut as move will help reduce bad loans in books, besides their fortunes won't depend on the performance of asset reconstruction companies. State-run banks are finally ready to bite the bullet on taking hair-cuts in selling loans to asset reconstruction companies (ARC). Large PSU banks like State Bank of India, Bank of Baroda and Bank of India favour selling bad loans on all-cash basis instead of ARCs security receipts (SRs) for taking non-performing loans off their books, people familiar with the move said.
Reuters reports Eurozone Unemployment Reaches Near 15-Year High
Unemployment in the euro zone reached its highest level in almost 15 years in February, with more than 17 million people out of work, and economists said they expected job office queues to grow even longer later this year.
The institutions are able to sell off assets rapidly because buyers, such as US investment groups, are keen to grab a slice of the British market and see the loans as a good way to cash in on the UK’s relatively strong economic recovery, according to PwC.
By contrast banks in Germany and Italy are only expected to sell loans worth €20bn-€25bn each.
By Valentina Za and Silvia AloisiMILAN (Reuters) - A drive by Italian banks to come clean on bad loans during a European bank health check may force them to raise as much as 20 billion euros in capital, three times more than that penciled in so far, to shore up their balance sheets.
One of the mysteries surrounding the insolvent, and already once bailed out Spanish banking sector, has been why are reported bad loans - sharply rising as they may be - still as low as they are currently. Courtesy of the just completed bank earnings season, and a WSJ report, we now know why: it turns out that for the past several years, instead of accurately designating non-performing loans, banks would constantly "refinance" bad loans making them appear viable even though banks have known full well there would be zero recoveries on those loans.