Spain plans $11b bank bailout
Spain will recapitalise BFA-Bankia with as much public money as necessary, as the nationalised group needs at least 9 billion euros ($11 billion) to comply with banking rules, Economy Minister Luis de Guindos said.
Two decrees passed this year will require BFA-Bankia to set aside 7.1 billion euros in provisions and 1.9 billion euros as a capital buffer, de Guindos told a parliamentary committee today in Madrid. BFA, the parent company that was seized by the state's FROB rescue fund on May 9, is being valued and the results will be published in mid-June, he said.
“The FROB will cover whatever capital increases may be necessary, using the available instruments that are most appropriate to this type of operation,” de Guindos told lawmakers.
Read more: Plans