Monthly Archives: November 2012

Samaras says the debt deal ensures uninterrupted helena Greece in the euro

Greek Prime Minister, Antonis Samaras, said that the agreement reached Tuesday between eurozone countries and the International Monetary Fund (IMF) has laid the groundwork for helena debt sustainable again and guarantee its survival in the euro.

“We have set the stage for Greek debt, the more serious and destabilizing problem facing Greece, sustainable again,” Samaras said in a televised institutional statement.

Greek Prime Minister stressed that this agreement has been closed down a “very dark period for Greece,” characterized by pessimism in the country, the international general distrust and uncertainty about the future of the economy helena. “Greece has managed to restore its credibility,” he said.

In this line, also said the agreement will allow the country to remain in the euro zone, and stressed to leave the monetary union would be much worse for all hazards and prolong the Greek economy.

It also argued that the new conditions approved for the rescue of Greece guarantee that there will be “more painful measures” in wages, pensions and social benefits, and even fight to end social injustices when targets are exceeded.

In this sense, he argued that for the first time only 10% of the 34,500 million euros that the country will receive in December will go to pay interest, while the rest will stay in one way or another in the country.

Therefore, work wanted to thank everyone who has helped to achieve this agreement, including the two parties forming along with their training Greek coalition government, and especially the country’s citizens, who are the architects of the success in negotiations.

The eurozone countries and the International Monetary Fund (IMF) reached on Tuesday at dawn, after nearly 13 hours of negotiations, an agreement to release 43 700 million emergency aid for Greece, after the IMF agreed to relax the target Greek debt reduction to 124% in 2020, instead of 120% had demanded far, considering the threshold of sustainability.

FROB awarded Banco de Valencia to CaixaBank for euro

The Fund for Orderly Bank Restructuring (FROB) awarded Banco de Valencia to CaixaBank for one euro, after a disbursement by the agency under the Bank of Spain of 4,500 million euros in a capital increase, the bank and the FROB

Moreover, previously existing shareholders have endured losses that may be required by, among others, the risk property writedowns required by law.

After the sale, it is estimated that CaixaBank will have a share close to 99% of Banco de Valencia and in any event not less than 90%, even if you had a high degree of participation of minority shareholders in the capital increase.

The operation has a protocol of financial support measures that is implemented in an asset protection scheme whereby the FROB will assume, for a period of 10 years, 72.5% of the portfolio experiencing losses of SMEs / autonomous contingents risk (guarantees) of Banco de Valencia, after applying the existing provisions in such assets.

The sale was executed after the transfer of assets of Banco de Valencia to ‘bad bank’ (Sareb) and the exercise of management actions hybrid and subordinated debt instruments issued by the entity Valencia.

CaixaBank said after the execution of the acquisition, which is subject to obtaining appropriate authorizations and approvals and administrative provisions of the European Union, the pro forma ratio at 30 September

2012 Basel II core capital would stand above 11%, remaining

also a cash position of more than 50,000 million euros.

Acquisition is expected to have a positive impact on earnings per share from the first year CaixaBank. In addition, the company provides annual cost savings estimated 85 million in 2014 and gross restructuring costs of 233 million euros, the company said in a filing with the CNMV.

About 365,000 million in assets.

The agency under the Bank of Spain had given priority to the sale of Banco de Valencia to their smaller size. Valencia Bank has total assets of around 20,700 million euros in September, and it has 356 offices.

With the purchase of the nationalized entity, Caixabank would add a total of about 365,000 million in assets and 6,987 offices, data also include Civic Banking.

In continuous trading, shares of Banco de Valencia jumped 12.5% and fixed the price of its listing on 0.180 euros per share, with rumors pointing to the imminence of the operation that eventually confirmed the close session.

The Valencian entity recorded a loss of 389.4 million euros in the first nine months of the year, which decreased by 55.5% the “red numbers” of 876.44 million euros made in the same period previous year.

Moreover, the management of Banco de Valencia and the unions reached last November 12 agreement on the Redundancy Employment (ERE) submitted by the entity that will ultimately affect 360 workers, of which 228 will be early retirement and the rest extinctions of contract.


The FROB auction resumed exfilial Bancaja, by the de Catalunya Banc, on November 16, after being suspended before the audit took place on Spanish banks, in the framework of EU aid up 100,000 million to clean up troubled institutions.

The stress tests developed by the consultancy Oliver Wyman found a capital needs of Banco de Valencia to 3.462 million euros in adverse economic scenario.

In November 2011 the Bank of Spain stepped in Banco de Valencia to its delicate financial position and its liquidity position. In fact, the supervisor spent a total of 3,000 million of public money, divided between 1,000 billion to strengthen its capital and another 2,000 million provided through a line of credit to ensure its liquidity.

The price of housing in the U.S. rises 3.6 percent in third quarter

The housing prices in the U.S. rose 3.6% in the third quarter of 2012 compared with the same period of 2011, indicating that the housing market is recovering, reported Standard & Poor’s (S & P).

Case-Shiller indicator, which studies the evolution of housing prices in the country rose between July and September by 3.6% yoy and 2.2% compared to the second quarter of this year in the stock market today .

As regards the data for September, the price of housing in the ten largest U.S. cities rose 2.1% yoy and 3% in the case of the twenty largest cities reported

Compared to August this year, the Case-Shiller index rose 0.3% in September, when it accumulated six consecutive months of gains.

“With half a year of consistently increased the price of the home, you can safely say that we are in the midst of a housing market recovery,” said in announcing the data the Committee Chairman Indices S & P, David Blitzer, in a statement.

Thirteen of the twenty cities surveyed for this indicator progress was made in the amount of their property from August to September, highlighting Las Vegas and San Diego (1.4% each), Phoenix and Minneapolis (1.1%), and Los Angeles (1%), among others.

Blitzer also reminded that we are entering a traditionally weak season for the U.S. housing market and, despite this, “continues to improve”.

In any case, since hitting their peak in June and July 2006, housing prices in both the 20 and at the 10 largest U.S. cities in September accumulating a fall of 29%.

The Eurogroup morning to seek an agreement to unlock the third emergency aid to Greece

The finance ministers of the eurozone will look tomorrow, after two previous failures in recent weeks, an agreement to unlock the urgent help of at least 31,500 million euros-which probably will add another bailout tranches up to 44,000 million euros – Greece needs not to suspend payments in the coming days, which would lead him to leave the euro.

The confrontation between the Eurogroup and the International Monetary Fund (IMF) on how to reduce the enormous burden of Greek debt, which will hit the 190% of GDP next year, has prevented a compromise in previous attempts. IMF calls for euro countries to assume losses on their loans to Greece, which reject all governments, including Spain which has an exposure of 25,000 million at Athens.

Following the failure of last Monday, despite 12 hours of negotiations, the IMF has agreed to relax the goal of reducing Greece’s debt to 124% in 2020, instead of 120% had demanded so far considered the threshold of sustainable, as he assured the Greek Finance Minister, Yannis Stournaras.

Even so, there is still a funding gap of 10,000 million euros which is not covered by all the alternatives that are on the table, has admitted Stournaras.

Instead of an acquittal, the Eurogroup will adopt a set of measures to reduce the burden of debt consisting basically of reducing interest rates and extending the loan terms. In addition, the European Central Bank will Member States to achieve the benefits of Greek bonds that they hold (about 50,000 million) and these in turn give them to Athens.

Finally, the Eurogroup planet provide around 10,000 million to the Hellenic authorities for a buyback of its own debt in order to remove it from the market at low prices.


However, the vice president of the Commission, Olli Rehn, has also admitted that “we must make it clear that these measures do not preclude the need to be revisited Greek debt sustainability in the future and take additional steps, depending of course on the full implementation of the reform agenda by Greece “.

This means that the Eurogroup countries arise Greece forgive some of its debt in 2015 to ensure permanently that is sustainable. This removes also be used as an incentive to ensure that Athens meets all EU committed to reforms, according to Sunday newspaper Welt am Sonntag German.

However, the newspaper said that taketh not be decided in the meeting on Monday.

New round of negotiations to save Greece

Finance ministers of the euro area and other public creditors of Greece, the International Monetary Fund (IMF) and European Central Bank (ECB) will meet in Brussels on Monday for the third time in two weeks to try an agreement to provide assistance to Greece and avoid the risk of a default.

In total, there are 44,000 million euros in aid pledged to the country, whose delivery is delayed. “For once, Greece apparently has no responsibility” for this delay, emphasizes Carsten Brzeski, an analyst at ING bank.

Indeed, the country has carried out reforms that required him to get at least most of the sections of this aid, 31,200 million euros blocked since the spring.

The Greek government on the brink of bankruptcy, it has now become impotent spectator of negotiations between creditors, unable to agree on how to reduce the massive debt helena.

Finance ministers of the euro area (Eurogroup) spoke by phone on Saturday and “agreed on the basis of negotiations with the IMF” on ways to reduce Greece’s debt, said a European. That conference call was aimed at preparing the meeting on Monday.

The 17 countries of the euro zone, the IMF will be represented on Monday by its director general, Christine Lagarde and ECB already decided to award two additional years to Greece to put its finances in balance in 2016 instead of 2014. This delay will be for them an extra cost of 32,000 million euros.

But yet to find an agreed solution on the future of Greek debt. Two weeks ago it became clear disagreement between Lagarde wants Greece to reduce its public debt to 120% of GDP in 2020, and the Eurogroup, in favor of postponing this goal until 2022.

The easiest solution would certainly erase part of Greek debt by the public creditors, drawing on what they already do private banks agreed in early 2012. The IMF supports the idea, but the ECB is opposed, like Germany.

At least the conference call on Saturday to progress in some points.

Finance ministers of the euro zone agreed to reduce interest rates on loans granted to Athens bilateral and within the first program of aid to Greece, but not yet established what the new rates.

They also decided to give Greece a share of the profits made by the national central banks and the ECB on the Greek bonds they hold.

In addition, based on a Greek debt purchase “was achieved.” The European Financial Stability Fund (EFSF) would be responsible for buying Greek debt on the secondary market, but it remains to be seen to what extent, the source told AFP consulted after the conference call.

It is not known if the IMF “agree” with these measures, he said, because as envisaged by now do not reduce Greece’s debt to 120% of GDP by 2020, a goal that is very attached to the IMF.

According to the German newspaper Welt am Sonntag on Sunday, representatives of the euro zone this week in Paris spoke of a possible Greek debt relief, 2015.

However, German Chancellor Angela Merkel, was on Friday very clear: “I am against this debt relief, and I want to find another solution,” he said, although he waited to be resolved on Monday the matter of delivery of a stretch financial aid to Greece.

Volkswagen announced record investments of 50,200 million euros until 2015

The German carmaker Volkswagen (VW) today announced a record investment program amounting to 50,200 million euros until 2015 for factories, models and new technologies.

The Volkswagen Group reported that the supervisory board has given the green light to this investment program in the stock market today, which quadruples the operating profit of 11,300 million euros that the company earned in 2011.

“Despite the challenging economic environment, we invest more than ever to achieve our long-term goals,” said Volkswagen CEO Martin Winterkorn on a finance report at

The investments will go to Volkswagen factories worldwide, especially in Germany, and new technologies.

“For the first time, the investment plan also includes new established brands MAN and Porsche,” VW said in a statement.

“This investment is the key to leadership in technology and innovation of the Volkswagen group. Allows us to further strengthen our competitive position and ensure that we are fit for the future,” said Winterkorn.

Stock market investments in property, plant and equipment amount to 39,200 million euros, of which 60% will be invested in Germany.

“This way, we establish the foundations to ensure that our 27 German production facilities still lead international competitiveness and innovation”, added Winterkorn.

The president of the council, Bernd Osterloh, said that “high levels of investment strengthen the Group’s ability to meet the challenges of the future, in terms of products and production processes.”

Volkswagen will invest in a new generation of brand trucks MAN

Also, the largest carmaker in Europe will develop new hybrid and electric engines.

Volkswagen will invest over the next three years 14,500 million euros in product, including capacity-building as the new Audi facility in Mexico and the expansion of the Porsche in Leipzig again in segment Macan of SUVs

The joint ventures in China are not consolidated and are not included in these figures.

These companies invest their own funds 9,800 million euros in new factories and products between 2013 and 2015.

SP confirms the note ‘AA +’ and the negative outlook for France

The rating agency Standard and Poor’s (SP) confirmed on Friday that the note ‘AA +’ from France, and the negative outlook, four days after the decision of its competitor Moody’s remove the ‘triple a’ to this country.

“We confirm the notes because, in our opinion, apply additional short-term reforms,” the statement said.

In this release, SP believes that the French government is determined to make “significant budgetary and structural reforms,” and that the measures announced so far, especially those designed to boost competitiveness, as “useful” but insufficient.

According to the agency, the sectors to be reformed are the labor market and services.

Van Rompuy believes that in early 2013 there will be agreement on the EU budget

EU leaders reach “probably” early next year to agree on the budget 2014-2020, said Friday the European Council President, Herman van Rompuy, following the end of a summit that ended without agreement.

“An agreement is possible at the beginning of year,” said Van Rompuy. The budget negotiations “are difficult and take time,” he added.

“The bilateral talks (which Van Rompuy held with each of the leaders) showed that there is a potential to reach a consensus,” he said. The European summit on the budget ended without agreement by the failure of the leaders to reconcile conflicting views as the UK, which demands radical cuts, and that of many countries that stand to lose aid.

European leaders were heading towards a failure from the start of the summit, on Thursday night, before the demands of the British Prime Minister, David Cameron, and other net contributors to demand more cuts. Van Rompuy presented a new budget proposal for 2014-2020 trying to collect all the demands and ‘red lines’ that you were exposed to during the day the 27 leaders of the bloc in bilateral meetings.

The plan, totaling 972,000 million, or the equivalent of 1% of EU GDP, contains virtually the same overall cuts of about 80,000 million already raised last week, although distributed differently by increasing the amounts allocated to cohesion and the common agricultural policy.

Failure of the summit on the EU budget

European leaders failed Friday in their goal of reaching agreement on the budget for 2014-2020, in a two-day summit marked by the intransigence of the United Kingdom, which requires radical cuts, and the determination of many countries, willing to battle for aid.

“An agreement is possible at the beginning of year,” said President of the European Council, Herman van Rompuy. “The budget negotiations” are difficult and take time, “he said during a press conference at the end of the summit between the 27 heads of state and government.

British Prime Minister David Cameron arrived at the meeting with the same determination with which he was, demanding drastic cuts in a budget that represents 1% of gross domestic product (GDP) of the European Union. “The deal that was on the table was not something we could accept, nor was liked by many countries,” Cameron said at the end of the meeting.

The president of the European Union, Herman Van Rompuy, on Thursday night presented a new budget proposal for 2014-2020 trying to collect all the demands and “red lines” that you were exposed to during the day the 27 leaders of the bloc bilateral meetings.

The new plan, totaling 972,000 million, equivalent to only 1% of EU GDP, contains virtually the same overall cuts of about 80,000 euros had already raised last week, although distributed differently.

The difference is that cuts less than expected heading for cohesion and the Common Agricultural Policy (CAP). However, according to European sources, the British expected additional cuts of between 40,000 and 50,000 million euros, bringing the total sum to 120,000 to 130,000 million euros.

Cameron did not move their position one iota. The British Prime Minister has a clear mandate and has threatened to veto the budget package in case their demands are not met. Also want to keep intact the “British rebate” in force since 1984, which makes up the United Kingdom for agricultural subsidies received by other EU countries.

During the negotiations, was reflected the gap between net contributors (the richest countries to put more money in the common budget), that require cuts in times of austerity, and the countries most affected by the crisis, they do not want to give up their aid.

The issue is so sensitive that causes cracks up in European institutions (European Council, European Commission and European Parliament). Both Parliament and the Commission insist that the proposal should include fewer cuts and exceed one trillion euros, if you are looking to boost employment and growth.

But the European Council sided with the “friends spend less and better”, led by Germany, who want even more cuts, arguing that it requested in austerity national accounts should be applied in European expenditure.

This group clashes with the interests of the “friends of cohesion”, including Spain and Italy, who asked to take into account the situation of the countries most affected by the crisis.

Spain, who wanted a budget “reasonable”, especially in cohesion and agriculture, was “reasonably satisfied” despite the lack of agreement.

The country plunged into recession and with unemployment affects 25% of its workforce, made common front with France and Ireland to defend the Common Agricultural Policy (CAP), a key sector for the economy of these countries. The idea is to make a “solid front” in 6000 to raise millions more to Van Rompuy’s proposal on the CAP.

Van Rompuy Rajoy offered last night to an “on” Extra 2,750 million euro in cohesion funds for Spain. Of this amount, 1,550 million would go for the regions in transition, including Andalusia and Castilla-La Mancha. Spain comes out with a better position, said the head of the Spanish Government, Mariano Rajoy. “I’m reasonably pleased to see not only improved the position of Spain, but above all for having found a very constructive spirit by our European Union partners,” he added.

The eurozone will meet again on Monday after failing to reach an agreement on Greece

The euro zone on Monday postponed the deal to unlock a tranche of aid to Greece, pending since June, after more than eleven hours of intense discussions where differences resurfaced with the IMF on the best way to relieve Greek debt.

So, next Monday the eurozone will meet again for the third time in two weeks to close a deal with the IMF that once and for all remove the pit to Greece.

Although time and again admitted “progress” and be “closer” to the conclusion of an agreement, the euro zone ministers have been unable so far to find a formula agreed with the IMF to reduce Greece’s debt and make sustainable progress on the stock market today. German Chancellor Angela Merkel said Wednesday that the possibility of an agreement but stressed that Europe’s problems can not be solved in the overnight.

“There is a possibility we do not know, but there is a possibility that Monday is a solution” for Greece, said the Chancellor as reported by But another source close to the negotiations was more pessimistic: “We are not at all close to a deal.” Athens urged the EU and the IMF to overcome their divisions to the risk of bankruptcy hanging over the country and destabilize the entire eurozone stock markets.

Greek Prime Minister Antonis Samaras-taking difficult decisions in recent weeks-tone rose after the failure of the negotiations: “our partners and the IMF have a duty to realize what I assumed, it is not only the future of our country but the stability of the whole euro area, “he said in a statement.

Last week, the Eurogroup convened a special meeting for Tuesday with the intention of unlocking a stretch of 31,200 million euros in ransom for five months pending. But at the deteriorating Greek coffers, those funds would join you two tranches until the end of this year, so that aid would rise to 44,000 million euros.

However, there are still several issues to close between the troika of the main creditors of Greece (EU, IMF and European Central Bank) before giving the green light for aid, which then must be approved by national parliaments so that delivery be postponed until December.

A European government source said Wednesday that the euro zone has been set Dec. 5 as a “deadline” for the next installment to Greece. “If we do not deliver aid between now and December 5th, we will have a real problem,” he said.

The Greece troika decided to give two years for the country to meet the deficit target of 3% of GDP in 2016 instead of 2014. However, this postponement means that Greece will need another 32,600 million euros.

And the key is how to finance the operation and also to find a solution that would reduce the country’s debt, which carries five consecutive years of recession. In addition to finding a formula that meets the stringent conditions imposed countries like Germany to continue providing help and not hovering over the Greek government is facing a population tired of cuts and austerity.

And the level of Greek debt has soared. After the two credit lines of creditors 240,000 million euros, Greek public debt next year will reach nearly 190% of GDP. The game played by the IMF, the ECB and the euro zone is becoming more complicated. Europeans believe that the answer “easier” would give Greece two years, until 2022, to Greek debt becomes sustainable.

But the IMF insists that the red line to bring the debt / GDP ratio of Greece at 120% is 2020. Otherwise, will retire from the country’s bailout program Greek. Europeans are resisting the public sector (institutional creditors), which has 70% of the Greek public debt, accept a haircut, as proposed by the IMF.

“Let’s try that has not removed”, said Spanish Economy Minister Luis de Guindos before the meeting. “” There is a menu of alternatives to alleviate the debt burden, “he added. Given a monetary union already entered recession, and as elections approach in Germany, no country wants to take responsibility for asking for more taxpayers Europeans.

The possibilities being considered are varied and inclusive: reducing interest rates that Greece has to pay, a moratorium on payment of interest, a lengthening of maturities and a buyback of Greek debt through a loan fund permanent rescue (ESM).

The authorities and the Greek people lose patience. The Greek government has already fulfilled all the requirements: the adoption of the draft austerity budget for 2013 and a plan of 18,100 million additional savings by 2016.

Greece “did the right thing and that to which it is committed” Samaras insisted. Also on Wednesday, the Greek Ministry of Development reported that the European Investment Bank (EIB) has approved a loan of 650 million euros to help support the construction of highways across the country.