BRUSSELS: The first injection of loans to recapitalise Spain's broken banking system will amount to 37 billion euros (nearly $50 billion), Spain's Finance Minister Luis De Guindos said Monday.
"The injection of funds into 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 euros ($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 euros in toxic assets to Sareb in December this year, the central bankBSE -0.27 % said.
The ceiling for bad assets to be held in Sareb has been set in law at 90 billion euros.
indiatimes.com
"The injection of funds into 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 euros ($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 euros in toxic assets to Sareb in December this year, the central bankBSE -0.27 % said.
The ceiling for bad assets to be held in Sareb has been set in law at 90 billion euros.
indiatimes.com
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