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Banks must cut costs as bad loans rise-Solbes

Thu, Oct 9 2008, 08:46 GMT
http://www.afxnews.com

MADRID, Oct 9 (Reuters) - Banks must cut costs in the face of rising bad loans, Spanish Economy Minister Pedro Solbes said on Thursday.

"Bad loans are rising because of unemployment and the residential construction sector, so all financial institutions must think about ways to become more competitive over the next few years," Solbes said.

The Spanish government hoped to keep a 30-50 billion euro ($40.88 billion-$68.14 billion) fund to aid the financial system open for as short a time as possible, Solbs said.

(Reporting by Andrew Hay; writing by Jason Webb; editing by Tracy Rucinski) ($1=.7338 Euro) ($1=.7338 Euro) Keywords: FINANCIAL/SPAIN COSTS

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