Spain shows the cost of postponing pain

摘要

About two years ago, an investment banker told this magazine that the €30bn loan losses then being disclosed for Spain's cajas (savings banks) were a gross underestimate. He estimated the actual losses at €l50bn to €200bn. An understandably nervous press officer asked us to take the comment on background. But today, the official figure acknowledged by Spanish regulators has vindicated our nameless banker, reaching €l80bn.