Bloomberg News

Salgado Says ‘Logical’ For Convertibles to Count for 9% Capital

October 24, 2011

Oct. 24 (Bloomberg) -- Finance Minister Elena Salgado said it’s logical for bonds that are mandatorily convertible into shares to count towards new capital requirements of 9 percent and Spain is lobbying for that to be the case.

“It’s a request we’ve made and I’m sure that this request, which is very specifically Spanish, will be taken into account, at least that’s what seems to be the case according to the contacts we’ve had with the banking authority,” Salgado said in an interview on Radio Nacional today.

“It’s completely logical: independently of the date that’s finally decided for them to have 9 percent capital, just a few weeks later there are bonds that mandatorily convert into shares, so it makes sense that they should already be considered capital.”

To contact the editor responsible for this story: Emma Ross-Thomas at erossthomas@bloomberg.net


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