Troubled Spanish bank Bankia needs 9 billion euros (11.3 billion dollars) to ensure it remains solvent, Economy Minister Luis de Guindos said Thursday.
Spain's fourth-largest bank was partly nationalized earlier this month following the resignation of its director, Rodrigo Rato.
The need for 9 billion euros comprises 7.1 billion euros in provisions to cover toxic real estate assets and 1.9 billion euros to create a capital buffer, de Guindos said.
However, the exact amount that the state would inject into Bankia will be determined after the bank presents a viability plan, the minister said.
In 2010, Bankia received 4.5 billion euros from the bank restructuring fund FROB. Those credits were converted into shares to allow the state to take a 45-per-cent stake in Bankia, which is riddled with nearly 32 billion euros in bad real estate assets.
Most Popular Stories
- Apple Planning to Launch Mobile Wallet
- Fantasy Football Gambling Industry Facing Increased Legal Scrutiny
- Durant Spurns Under Armour to Return to Nike
- Netflix Unveils New Way to Share Picks
- Challenge to Texas Voter ID Begins
- Men Are the Big Winners in the Jobs Recovery
- Construction Spending Staged Strong Rebound in July
- Auto Industry Going Back to Bad Habits
- Celebrities Vow Revenge on Hackers Who Posted Photos
- Manufacturing in U.S. at Fastest Pace in 3-1/2 Years