Spanish banks need 5 bln eur in extra provisions- Bank of Spain

November 6, 2013

MADRID, Nov 6 (Reuters) - The Bank of Spain said on Wednesday that the country's banks would have to make an extra 5 billion euros ($6.7 billion) in provisions against losses on bad debts due to changes in the way refinanced loans are treated.

Earlier this year the regulator told lenders to reclassify more of their refinanced loans as non-performing ones. The figure, based on a first review of data provided by Spanish banks, is at the lower end of the 5 billion to 10 billion euros in provisions lenders were expected to have to make.

The Bank of Spain, which said banks would be able to absorb the hit, added that the amount of non-performing refinanced loans had grown about 20 billion euros after the changes, to 92.2 billion euros. ($1 = 0.7421 euros)