Eu Regulators Clear Spanish Lender Bankia State Aid for Now

Eu Regulators Clear Spanish Lender Bankia State Aid for Now


European Commission said that Spain's Bankia got temporary approval for its state bailout
The EU executive said the state aid included a conversion of existing state-owned preference shares of 4.465 billion euros into equity and a liquidity guarantee amounting to 19 billion euros
The Commission said that the decision does not cover a BFA request for a further 19 billion euro capital injection, as the Spanish authorities are still under review
However, Spanish authorities will need to present a restructuring plan within six months to offset this support
Quotes
"There is no doubt that the beneficiary will need to undergo deep restructuring,"
"The conversion of preference shares into capital will simplify the ownership structure of BFA, which becomes fully State owned, thus making the necessary restructuring decisions easier to take."
Joaquin Almunia, EU Competition Commissioner



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