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Sabadell sees effect from floods in Spain workable but will schedule arrangements

Spain's Sabadell will reserve tens of countless euros in provisions to cope with the effect from last month's fatal floods in eastern Spain, its primary financial officer Sergio Palavecino said on Friday.

On Wednesday, the Bank of Spain said disastrous floods in eastern Spain were likely to have an unfavorable impact of 0.2 percentage points on financial activity in the fourth quarter.

The impact not is going to be zero but not material (...). some 10s of millions of provisions however something that can be. manageable, Palavecino told a monetary event in London, adding. the loan provider would give a clearer photo in full-year outcomes.

Spanish banks have an overall loan exposure of over 20. billion euros to the most affected areas by the floods however the. Bank of Spain Guv Jose Luis Escriva on Wednesday stated the. banking sector would have the ability to take in the shock.

Caixabank's President Gonzalo Gortazar on. Tuesday also reckoned there would a rise in bad loans as. repercussions of the floods in the location.

(source: Reuters)