From Creditflux:
Spain’s banks and cajas are negotiating on a one-to-one basis with the Bank of Spain to “fine-tune” their 2008 accounts in order to avoid taking catastrophic write-downs on loans.
Spanish banks seek to “fine-tune” property loans
El Banco de España permite a los bancos ‘tunear’ las cuentas para evitar quiebras futuras
my spanish is a bit rusty, but this is consistent with what creditflux wrote:
“Se trata de tunear las cuentas para que vayan limpiando el balance poco a poco, lo que se conoce como negociar el calendario de amortización de los activos malos, pero sin llevar a ninguna entidad a la quiebra”
that’s fine-tuning, taking losses over time instead of the full mark-to-market hit, if you let citi or any other under capitalized bank do this, they can show a profit too or phoney capital ratios …
later:
“…al menos una docena de entidades no cumple el coeficiente de solvencia.”
at least a dozen {banks} don’t comply with capital ratios
The article from Cotizalia and Creditflux do not seem to say the same fact.
In Creditflux its seem the Bank of Spain is allowing them to increase the amortisation of toxic assets to avoid problems.
In the original article, Cotizalia is mentioning that the Bank of Spain is going one by one to approve each of the 2008 accounts; asking to set provisions depending on which level of credits to real estate they have. It mentions that they will not ask to write down all the subjective credits (non defaulted) and those will provisioned over the next quarter.
The action seems to ask the banks and cajas to have less profit and more provisions.