HispanicBusiness

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.