The future of the Caja de Ahorros del Mediterráneo (CAM) is complicated. The bank from Alicante faces a tough schedule of maturing debt obligations of around 9 billion euros during the next two years. According to information provided by the savings bank to the Comisión Nacional de Mercado de Valores, an entity similar to the SEC in the US, there was a total maturing debt of 7,7 billion euros coming due, when the financial entity tried to merge with other cajas as Cajastur, Extremadura and Cantabria to create a new bank called Banco Base.
That plan didn´t work out but sources familiar with the proceedings say that 80 percent of that amount was from the CAM, so that the entity would have a payment due of 6,19 billion euros.
That would be one of the most complicated pieces of a puzzle that can get crepier the year after. The same document filed with the market regulator confirmed that debt maturing in 2012 for Banco Base would be 3,7 billion euros, of which 2,99 billion came from the CAM. The total amount for the next two years sum up a total of more than 9 billion dollars.
Spanish savings bank Caja de Ahorros del Mediterraneo (CAM) secured EU regulatory approval on Monday for 5.8 billion euros in state aid and must submit a restructuring plan within six months.
State-backed bank restructuring fund FROB will provide a 2.8 billion euro capital injection to CAM, one of five Spanish banks which this month failed a European Banking Authority stress test. The fund will also give CAM a 3 billion euro liquidity facility, the European Commission said. FROB will receive shares in CAM in exchange and will take over management of the bank until a buyer is found.
