Spanish Government Surprised By Real Madrid Loans

The Spanish government have voiced their surprise about Real Madrid's huge loans from two banks at a time when the country's economy is in recession and smaller companies are unable to borrow money.

Finance Minister Elena Salgado expressed her concern that Caja Madrid had managed to lend €76.5 million to Los Merengues at such a delicate time.

Banco Santander have also agreed to loan Madrid a similar quantity and that is reported to have allowed the club to make their huge offers for Kaka and Cristiano Ronaldo.

"It surprises me, and what I would ask banks is that: if they have liquidity, that they also make loans to small and medium-size companies and families," Salgado is quoted as saying by USA Today.

"I would ask that they make an effort for them."

The minister also put her message across without saying too much when she was asked for her thoughts on the €94 million outlay to sign Ronaldo from Manchester United.

"It goes beyond the dimensions of what I would have imagined," she added.

After ten years of boom time in Spain due mainly to the construction industry, there is now a recession and many banks are in trouble because of their exposure to the real estate sector.

Caja Madrid's annual profits fell by 71 per cent last year and that is one of the reasons why some people have raised their eyebrows at the agreement on Monday to lend Madrid the money.

Lucas Brown, Goal.com