Back in September, according to published five days, loans to families remained frozen, while lending to companies fell 2% in annual terms. With the increased uncertainty that the views of the Bank of Spain generated in the banking sector, is likely to deepen the negative effect on credit generation system. a The crisis is generating costs to the economy through the banking sector problems. As has happened in all countries, this crisis will end up paying the poor taxpayer, also in Spain. Indeed, in Spain there is a bailout of financial institutions designed by the government and known as the Fund Restructuring Banking Ordinance (Frob), which has financed almost 40. EUR 000 million to financial institutions as of 15 September, through state guarantees to debt issued by banks and savings banks. a To make matters worse, according to forecasts from the Bank of Spain: The difficulties faced by the Spanish banking sector suggest that the Frob accelerate its activity in the coming months. a But the Spanish government’s decision to rescue troubled financial institutions must first have approval from Brussels that a case-by-case basis to ensure that the aid would affect the fair competition in the European banking sector.

a spokesman Speaking Competition, the EU executive, Jonathan Todd: We will ask for individual notifications to examine each individual case of aid to Spanish banks and examine its compatibility with state aid rules. a The problem of the conditions set out in Frob are linked to their breadth and generality, which leaves much discretion to the authorities Spanish at the time of giving aid to individual banks, as Todd puts it. The necessary approval by the European Commission< body, makes it more difficult and slow process that is probably more demand on the negative impact of the opinion issued by the Bank of Spain. a The recklessness of the Bank of Spain will undoubtedly have a negative impact on the Spanish banking sector as a whole. Again, these facts we generate a greater awareness of the need to understand the connection between the facts of economic impact and our investment decisions. So from Latinforme we offer the Basic Economics Course for Investors, who no doubt understand, it will help to avoid making wrong decisions by ignoring the economic context of their investments.