The Spanish government has launched a plan that could total €50 billion (£39 billion) to help its banking system, something that could help raise liquidity in the Spain property market.

Prime minister Jose Luis Rodriguez Zapatero said this measure would be used to buy up high-quality assets and would work in conjunction with the provision of additional liquidity by the European Central Bank.

Such measures may help boost liquidity and in doing so increase mortgage availability in the country, something that could benefit those looking to the Spain property market for their overseas investments.

The move may also be seen as part of a concerted effort by different governments and central banks to shore up their financial systems to aid a general recovery from the credit crunch, a move that could help boost property values in Spain and elsewhere in the next few years.

Such actions include the UK government’s own package of £50 billion to aid Britain’s leading banks, which chancellor of the exchequer Alistair Darling announced today.

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