By 2011, NAMA reported a profit of €247 million as it cashed in some of the best of the property it seized from the U.K. and the U.S. But the state-owned agency plans to hold most Irish properties and development sites for up to a decade in hopes that the market will rebound first. It originally envisaged a €1 billion profit over its expected decade-long lifetime, but now says a break-even is more likely. Analysts expect losses.
De Guindos said Spain's new institution would be financed mostly by private investment with additional money from Spain's bank restructuring fund. He said only a small amount would come from the eurozone aid package.
De Guindos also announced the Bank of Spain would be given greater powers to intervene in earlier — and close down if necessary — banks with financial problems. The central bank would be able to intervene in banks that meet solvency requirements but are uncertain of fulfilling them in the future.
He said that in line with European banking rules, the government was raising the core capital requirements — the level of high-quality assets a lender has to hold to protect it from economic shocks — to 9 percent for all banks.
Results of a comprehensive audit of all Spanish banks are expected next month.
The reforms come as Spain got yet another dose of bad news Friday as the Bank of Spain reported a net capital outflow of €56.6 billion in June, topping an exit of €41.3 billion in May.
It said the outflow for the first six months of 2012 was nearly €220 billion, compared with an intake of €22 billion for the same period last year.
Jorge Sainz in Madrid, Barry Hatton in Lisbon, Portugal and Shawn Pogatchnik in Dublin, Ireland contributed.
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