Euro falls amid worries over Spain

12:43, May 25, 2010      

Email | Print | Subscribe | Comments | Forum 

The euro fell against the dollar on Monday as a rescue of a regional bank by the Bank of Spain sparked worries over the country's banking sector.

The Spanish central bank on Saturday took over troubled savings bank CajaSur after its planned merger with another small lender Unicaja failed.

CajaSur accounts for scarcely 0.6 percent of the assets of the Spanish banking system, whose soundness will not be in the slightest affected by this situation, the Bank of Spain said in a statement.

CajaSur will now have access to the Spanish Fund for Ordered Bank Restructuring (FROB), which was set up last June to prevent possible systemic risk. It was reported that the FROB would inject at least 500 million euros to restore CajaSur's solvency.

Spanish bank's bad loans inflated quickly, touching a 14-year high in February, after a decade-long housing bubble bursted. Bad loans eased in March with the ratio of bad debt to total debt, or non-performing loans (NPL) ratio, dropped to 5.2 percent from 5.3 percent a month earlier.

The bailout renewed worries that the eurozone debt crisis may spread to Spain. The euro slided in Asian and European trading hours on Monday. It gained some grounds in early New York trading but fell back later.


【1】 【2】

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • An Indian artist colours clay idols of Goddess Durga for the upcoming Durga Puja festival in Calcutta, capital of eastern Indian state West Bengal on Sept. 27, 2011. The festival celebrates the homecoming of Mother Goddess Durga and the victory of good over evil, dramatized by the goddess' demolition of the evil buffalo demon, Mahishasura. (Xinhua/Tumpa Mondal)
  • A model presents a creation of new upcoming designer Sergei Grinko at the Milan Fashion Week Women's Wear Spring/Summer 2012 in Milan, northern Italy, Sept. 27, 2011. The Milan fashion week closed on Tuesday. (Xinhua/Wang Qingqin)
  • Yu Guangyao (2nd R), president of Shanghai Shentong Metro Co., Ltd, bows his apology at a press conference on the subway trains collision accident happened Tuesday afternoon, in east China's Shanghai Municipality, Sept. 27, 2011. By 8:30 p.m. (1230 GMT) Tuesday, a total of 271 injured people in the accident have received medical treatment in hospitals, among them 180 have been dispatched. Other 61 injured people are still in hospital, in which 30 are under emergency observations. No critical injuries have been reported. (Xinhua/Chen Fei)
  • Children visit the Confucian temple in Tainan, southeast China's Taiwan, Sept. 27, 2011. A ceremony will be held at the temple to commemorate Confucius (551-479 BC) on Sept. 28, the birthday of the ancient Chinese thinker and educationist and the annual Teacher's Day of Taiwan in honor of him. (Xinhua/Ren Zhenglai)
  • Fourth-grader Ma Lianghai (left) and third-grader Ma Linxiang are engrossed in their work during art class at Zhaojia Elementary School in Dongxiang, Gansu province, on Sept 18. (Photo by Xu Jingxing/China Daily)
Hot Forum Discussion