admininto the four nationalised banks will be for €37 billion,” De Guindos told reporters on arrival for talks on Greece gathering eurozone counterparts and the International Monetary Fund.
The injection will principally concern Bankia, and Eurogroup chair Jean-Claude Juncker recently said the eurozone would decide on the release of the money, via the newly-established European Stability Mechanism rescue fund, around “the beginning of December”.
Spain requested in June a eurozone rescue line of up to €100 billion (US$129 billion) for its banks. The creation of a bad bank, called Sareb, was a key ingredient in the conditions imposed by Spain’s eurozone partners when they agreed to the loan.
Spanish banks that have been nationalised, including Bankia, are to transfer €45 billion in toxic assets to Sareb in December this year, the central bank said.
The ceiling for bad assets to be held in Sareb has been set in law at €90 billion.—AFP.
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