The auditors, who entered the CAM Bank after the intervention of the Bank of Spain in July, have raised doubts about the entity´s capacity to continue operations.
The Bank of Spain intervened when the CAM registered losses of 1,136 million euros.
The auditors cite various reason for the persistence of the debts and insist that “the evolution of the business and the continuation of operations depends on the success of the provisional administrators’ plan of action which is currently being drawn up.”
The auditors´ report presented yesterday is not optimistic and notes an indebtedness of 19.1% in the banks’s estate agency business with some 50% of its creditors being labelled “doubtful:” of these some 1.334 million are considered as substandard credit (dubious repayers). The report anticipates some 635 million euros in “failed credit:” of which some 12.677 million is unsecured debt.
The CAM had conceded 49.576 millions euros in credit by last June: some 35.2%, equivalent to 17.500 million euros, to the construction industry; 2.957 million euros to building companies; and 14.500 million to estate agency activity and service companies.
The other major part of the credit conceded by the CAM, some 39.41%, is finance for purchasing housing which shows a current indebtedness of 5.4%. Industry received only 3.67% of the loans.
The reluctance of the big Spanish banks to come to the rescue of the CAM may constitute a further threat to the future of the bank.
