Spain, the efforts to reduce the public debt has suffered a blow when it became clear that the billions of euros, the company plans to sell state lottery was discontinued due to adverse market conditions.
The decision means that the windfall € 7 billion (£ 6.07bn) that Spain had hoped the sale of lottery-off - the largest privatization of the country - not now appear. On the other hand, the € 3 billion a year in which the company leads to the famous Christmas lottery known as El Gordo or the fat, and other sweepstakes and contests pools will continue to go completely to the Spanish Minister of Finance.
Float of 30% of the company was to bring UBS, Credit Suisse, JP Morgan Cazenove and Goldman Sachs, after a hard push the banks of the City of London.
But Elena Salgado, finance minister said that currently, Spain would be better served by sticking to what is an employee cash generous. "The leaders said they were not convinced that we could get the price they and the government believes it is worth," she said.
Major Spanish banks Santander and BBVA was also rumored to have objected to the float, said it would take deposits from them.
Loterias reported operating income of approximately € 3 billion in 2009 was approximately € 9.8 billion and control 77% of the Spanish lottery.
Spanish bet about € 2.15bn on El Gordo - the biggest lottery in the world - with nearly a third selected by the lottery director. El Gordo has been played every year since the 1812th
The decision was taken less than a week after the government gave final approval for a partial list. Salgado said Loterias would be on the market when conditions improve, but she refused to give a date.
The Socialist government was under pressure from the opposition Conservative Party (PP), not to float the company.
Esteban Gonzalez Pons, a spokesman PP, ATT said his party should win the November 20 elections will not privatize the lottery company.
The decision means that the windfall € 7 billion (£ 6.07bn) that Spain had hoped the sale of lottery-off - the largest privatization of the country - not now appear. On the other hand, the € 3 billion a year in which the company leads to the famous Christmas lottery known as El Gordo or the fat, and other sweepstakes and contests pools will continue to go completely to the Spanish Minister of Finance.
Float of 30% of the company was to bring UBS, Credit Suisse, JP Morgan Cazenove and Goldman Sachs, after a hard push the banks of the City of London.
But Elena Salgado, finance minister said that currently, Spain would be better served by sticking to what is an employee cash generous. "The leaders said they were not convinced that we could get the price they and the government believes it is worth," she said.
Major Spanish banks Santander and BBVA was also rumored to have objected to the float, said it would take deposits from them.
Loterias reported operating income of approximately € 3 billion in 2009 was approximately € 9.8 billion and control 77% of the Spanish lottery.
Spanish bet about € 2.15bn on El Gordo - the biggest lottery in the world - with nearly a third selected by the lottery director. El Gordo has been played every year since the 1812th
The decision was taken less than a week after the government gave final approval for a partial list. Salgado said Loterias would be on the market when conditions improve, but she refused to give a date.
The Socialist government was under pressure from the opposition Conservative Party (PP), not to float the company.
Esteban Gonzalez Pons, a spokesman PP, ATT said his party should win the November 20 elections will not privatize the lottery company.
