The BBVA synthetic securitisation on 15th March consists of the tranching of a EUR 1.95 billion portfolio of loans to Spanish SMEs and the granting of a EUR 98m guarantee by the EIB and European Investment Fund (supported by the European Fund for Strategic Investments, which was set up as part of CMU) to BBVA regarding the mezzanine tranche. This kind of arrangement was contemplated by paragraph 2 of the 2014 Investment Plan for Europe, which says all EFSI interventions will be consistent with EU state aid clearance procedures; and presumably the EFSI guarantee fee was proportionate! This reduces RWAs and so allows it to make more new loans. We should doubtless expect more of this in Italy and perhaps Greece, where the NPL problem continues to act as a drag.