Spanish Deadlines Loom: Is Full Bailout On Its Way?

Español: Edificio sede del Banco Bilbao Vizcaya Argentaria en el barrio Villa Morra de Asunción. (Photo credit: Wikipedia)

Two key events on Tuesday will help determine the direction Spain, one of the euro zone’s biggest and most troubled economies, will take in the next few months. A report prepared by the “Big Four” auditors (Deloitte, KPMG, PricewaterhouseCoopers and Ernst & Young) into the source of much of Spain’s woes, its banking sector, is due Tuesday.

With the first tranche of aid for Spanish banks, amounting to 30 billion euros ($36.8 billion), due soon, this report could help assess who needs the recapitalization cash and how urgently.

BBVA [BBVA  6.56    0.05  (+0.77%)   ], the country’s second-biggest bank, thought to be much stronger than smaller regional banks, reported disappointing first half net profits Tuesday - down 35 percent, to 1.5 billion euros ($1.8 billion), after it wrote down 1.4 billion euros in real estate losses.

The under-fire Spanish government is expected to submit its 2012–2014 budget plan to the European Commission, a condition of extending its deficit cutting. Data on that deficit up to June will be published later on Tuesday. ... Continue to read.

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