Regulatory Alerts2012-10-31
Law 8/2012 of 30 October on the Sanitization and Sale of Real Estate Assets of the Financial Sector
The Spanish State enacted Law 8/2012 to mandate additional provisioning for impaired real estate loans and the transfer of these assets into specialized management companies to restore financial sector solvency. Credit institutions are required to submit compliance plans to the Bank of Spain by June 11, 2012, detailing measures to meet capital requirements and divest non-performing assets. The legislation establishes a favorable tax regime for asset transfers, reduces notarial and registry fees, and allows for deferred payments on certain financial instruments to support institutional restructuring.
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