Joes Luis Zapatero, Spain's prime minister, said that the government would cover up to 100bn euros in inter-bank loans
, but stopped short of announcing a recapitalisation scheme.
By implementing preventive measures such as the guarantee of deposits, savings and inter-bank loans
, the federal government has sent a clear message to investors emphasising the stability of the UAE's fin-ancial system, and alleviating any ill-founded concerns about the financial health of UAE banks.
New rules on the inter-bank market for krona go into effect, extending the maturity of inter-bank loans
to 9 and 12 months.
The scheme was designed so the deposits came from the assurance company and would be treated as customer deposits, which are considered a better measure of a bank's strength than inter-bank loans
. The [euro]7.2billion deposit was later accounted for in Anglo's preliminary results on December 3, 2008 as part of its customer deposits figure.
share of overdue loans in the total loan portfolio of commercial banks (exclusive of inter-bank loans
and deposits) reaches 6.2% (versus
The plan is comprised of a maximum of EUR320bn euros for the country's inter-bank loans
, and EUR40 billion euros at most for capitalisation of French banks.
"That will not banish inter-bank loans
," insisted McCreevy, "but we will ensure that now no institution will put all its eggs in one basket".