The State can take control of SAREBSAREB Company created in 2012 to manage and sell the assets (loans and real estate) removed from restructured banks during the financial crisis., plus other changes

Automatic summary, not yet reviewed

1. Limits on the State's stake in SAREB are removed. The FROBFROB Fund for the Orderly Restructuring of Banks (Fondo de reestructuración ordenada bancaria), a public body that manages resolution processes for credit institutions. may acquire and hold 50% or more of the shares, with approval from its Governing Commission and a prior report from the State's General Intervention Body.
2. Even if the FROB takes control, SAREB will remain governed by private law and will not become a state-owned commercial company. It must adapt to the new rules within a maximum of 3 months from the FROB reaching a majority, except for severance pay under commercial or senior management contracts, which applies from the law's entry into force.
3. Holdings the FROB acquires through its resolution functions will not be part of the Patrimony of Public Administrations. Also, decisions on its portfolio will be made by the Governing Commission in reduced composition, with the chair and representatives of two ministries, so supervisors do not take part in strategic decisions.
4. SAREB may transfer real estate to public bodies or nonprofits for social housing or other socially useful purposes, weighing that usefulness within its goal of maximizing value. Notarial and registry actions needed for these transfers will not incur notary or registry fees.
5. Section d) of Article 84.2 of the Workers' Statute is corrected, and the rules for public sector labor staff are clarified. Permanent and discontinuous permanent contracts require express justification and, if a specific replacement rate is needed, authorization from the Ministry of Finance and Public Function.
6. For declaring or reviewing high tourist traffic zones in 2022, 2021 data will not be used. Instead, the average for 2017, 2018 and 2019, before the COVID-19 pandemic, will apply.

Who it affects

• SAREB and its shareholders: The State can increase its stake and the FROB can take control without the company switching to public law.
• The FROB: It can buy more than 50% of SAREB and decides on its portfolio through the reduced Governing Commission.
• Public sector labor staff: Permanent and discontinuous permanent contracts require express justification and possible Finance Ministry authorizations.
• Businesses in tourist areas: They can keep or obtain high tourist traffic zone status using 2017 to 2019 data instead of 2021 data.
• Public bodies and nonprofits focused on social housing: They can receive real estate transferred by SAREB without paying notary or registry fees.

Words worth knowing

SAREB

Company created in 2012 to manage and sell the assets (loans and real estate) removed from restructured banks during the financial crisis.

FROB

Fund for the Orderly Restructuring of Banks (Fondo de reestructuración ordenada bancaria), a public body that manages resolution processes for credit institutions.

Bank resolution

Process to reorganize or wind down a troubled bank while protecting the financial system.

Tasa de reposición

Replacement rate: a cap set each year in the state budget law on how many public sector jobs can be filled based on vacancies.

Zona de gran afluencia turística

High tourist traffic zone: an area that, due to its many visitors, may allow shops to open longer than standard hours.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries