CAM Bank receives capital from the Spanish National Bank

Total 5 Spanish banks failed the stress test, performed the European Central Bank, a few weeks ago. Of these 5 banks, CAM Bank stood itself out in an unfortunate way. Where other banks lacked the relatively limited resources, CAM Bank was short of a lot of money. This has now resulted in the bank is partly taken over by National Bank of Spain, and has received 2.8 billion Euro in the first place.

CAM Bank problem is liquidity. The bank was very aggressive during the boom in Spain, and has offered full finance plus additional credits to the loan act as not all lenders should have been granted loans. The bank is now left with assets in the form of many properties. A very large proportion of these homes, are like the rest of the Spanish banks’ portfolios; not interesting. For a very large proportion of the properties, it applies to the locality is poor, and though the price is low, the properties is not necessarily interesting.

The 2.8 billion Euro, gives the National Bank 80% of the shares in the bank. In addition, there is opened up a credit on another 3 billion euros, if there is a need for additional liquidity.

One of the places where the CAM Bank holds property portfolio, is on the Mar Menor Golf Resort. Mar Menor Golf Resort is owned by the 4 banks, that created the company IRM, with CAM Bank as one of those banks. This resort is recommended by the Mediter Real Estate to be attractive and prices from IRM is particularly attractive. Mar Menor Golf Resort is 1 of only 4 golf resorts, where Nykredit currently offers financing, underlining quality stamp of the resort.

In spite of the Spanish economy’s situation could be better, has only 2 banks had to close since the “financial crisis” erupted in 2008. This comes care of an earlier crisis in the 90’s in Spain, where its solvency ratio requirements were increased significantly. The last few years, it is seen that especially the Spanish savings banks have merged. 7 of these, with Caja Madrid and Bancaja as the largest, has created Bankia, and is now Spain’s third largest bank.

Contact Mediter Real Estate for more information.