Bankia’s First EU Bailout Funds Expected in Days, Latorre Says
Bankia (BKIA) group, the largest lender nationalized by Spain, will receive its first rescue aid under the nation’s European bank bailout in the “coming days,” Deputy Economy Minister Fernando Jimenez Latorre said.
The European Commission and the Bank of Spain are assessing lenders’ needs and it’s “foreseeable that for Bankia in the coming days there will be a significant capital injection,” he told reporters in Madrid today.
Spain sought a European rescue of as much as 100 billion euros ($123 billion) for its banks last month, and the final amount will be determined after a stress test in September. The European Financial Stability Facility will fund a first tranche of 30 billion euros and keep it in reserve for unexpected needs, according to terms of the agreement.
Economy Minister Luis de Guindos has said that the four banks already under state control, of which Bankia group is the biggest, will be recapitalized first, as the largest capital needs are concentrated in those lenders.
To contact the reporter on this story: Emma Ross-Thomas in Madrid at email@example.com
To contact the editor responsible for this story: Craig Stirling at firstname.lastname@example.org