Blogging from the Highlands of Scotland until I return to the Murcia region of Spain
in the Autumn for a month or so

'Fair and softly goes far' - Miguel de Cervantes

Thursday, 31 March 2011

CAM bank seeks state rescue package

The plan hatched last year to merge CAM (Caja de Ahorros del Mediterraneo), an Alicante-based savings bank, with three other savings banks (Cajastur, Caja Cantabria and Cajas Extremadura) came unstuck yesterday when the last three decided against a merger with CAM. CAM is now seeking a rescue package from the Bank Restructuring Fund (FROB - Fondo de Reestructuración Ordenada Bancaria), in other words 'nationalisation'. The problem is of course that it is effectively insolvent because many of its assets in the form of property lending have reduced very significantly in value and are 'non-performing'. I will be watching what is happening to CAM closely over coming days, not least because it is the bank with which I have my Spanish bank account.

Sources:
- La CAM pide el rescate público tras fracasar la fusión para crear el Banco Base
- La Caja de Ahorros del Mediterráneo pide el rescate tras el fracaso de la fusión de Banco Base
- El Gobierno regional trabaja en el 'plan B' para buscar una salida a la CAM

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