The website South EU Summit, a news portal focusing on current affairs and analysis for countries in southern Europe, has published an article in which it assures that the strategy used to shore up the Spanish banking system has proven successful and can serve as a model for other European economies. The portal speaks of Sareb’s key role in the “restructuring and recapitalisation of banks” and how the company’s model could be adapted and implemented in other European countries.
The article outlines how Sareb, the entity known as a “bad bank”, allowed Spanish banks to transfer their toxic assets, including Non-Performing Loans (NPL), to a specialist entity set up to manage and sell them, a process that according to the news portal “gave Spanish banks much-needed breathing room“. South EU Summit states that the true value of a company such as Sareb lies precisely in their specialist loan management structure.
In the five years since it was founded, the company has managed to sell almost €14,500 million in NPLs and reduce its total asset volume – both in terms of loans and properties by 26.7%. Sareb has also repaid 25.4% of its senior debt.