A s mentioned in the title, was achieved at the possibility that the car can access financial rescue plan.
The asset acquisition fund of up to 50,000 million euros, one of the instruments created by the Government’s plan to support financial institutions will not only benefit banks and savings banks. They can also go to him lasfinancieras of auto companies, shopping malls and credit institutions in general. The fund will buy assets of these entities, with the requirement that are registered in the Bank of Spain, the securitising and its credit rating is the highest.
These entities, which have a small part of the total credit volume, are nevertheless very active in lending for consumer goods. As the whole economy, sufruieron in recent months the collapse of liquidity, which is traducio, for example, in a 22% drop in car sales.
One of the difficulties of these entities do not have declientes deposits, so all the money they lend comes from the financial system which in turn is funded in the interbank market.
Among the entities that will benefit from the initiative are financial are: BMW, DaimlerChrysler, General Motors, Volkswagen and El Corte Ingles. But other Cofidis fast credit as well, many banks and financial have their own access to the market of consumer loans.
Access to this fund of 50,000 million derives from the decree passed by the government last October 14, next to the 100,000 for guarantees. And also all financial institutions and thus also the consumer credit segment are included. The problem is that financial do not have their securitized loans and this condition shall be satisfied, if they want to put those assets in the new fund.
Notably, also in Germany and France it is expected to participate in automotive financial rescue plans, and the United States have provided aid directly to car manufacturers, involved in a serious crisis.
In Spain, the conditions of access to the fund of 50,000 million from financial are the same as for banks and savings banks. Although the details will be known once the government approves the regulatory development of the decree, it moved that the Treasury will give priority to new loans made from October 7.
The mechanism is that the entities group their loans to businesses and citizens and securitized. They then sell these securities to state that charges interest as assets in their possession and maturity of the debt, the state returns the vanquished assets and recover the money paid for them.
The Bank of Spain has registered 77 credit financial institutions operating in the country. In August, the outstanding balance that kept the financial amounted to 58.106 million euros (compared to 1.8 billion of total credit), of which almost 55% are loans to companies and other families. Financial accumulate NPL ratio was 4.19%, almost double the industry average (2.5%).
Moreover, property developers have asked the government to endorse the cost of financing and entry into the purchase of housing, which typically ranges between 20% and 30%. The new president of the Builders Association of Promoters of Spain (APCE), José Manuel Galindo, said that lack of funding is slowing down sales and the need of the sector amounted to about 45,000 million. The banks are no longer allows developers themselves who grant the guarantees on the grounds that represents an undue risk to the promoters themselves. The measure would revive sales and output the new housing surplus, estimated at about 350,000 flats.
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