Translated by Google
The Economy Ministry has revealed that 100% nationalize Bank Savings Financial, which control 45% of Bankia, while it has announced in a statement that the state will provide the capital “strictly necessary” to clean up group. Download the statement of Economics (. PDF) .
The department heads explained Luis de Guindos that will drive the process of converting the loan into shares of 4.465 million which granted the state the group in late 2008. As a result of this conversion, the State, through the restructuring fund Banking Ordinance (FROB) will own 45% indirect stake in Bakia, which will control.
The Bankia State support now amounts to 33,000 million euros
The Bankia State support now amounts to 33,000 million euros since the beginning of the financial crisis in 2008. Most of this figure corresponds to the guarantees that both the matrix, Finance and Savings Bank, as banks that participated in the merger have asked the Treasury and has yet to return. For this concept to 28.583 million plus interest. Despite the multimillion-dollar aid, which are complemented by the 2,500 million provided by the Guarantee Fund of Banco de Valencia, the last government a restructuring plan of the entity that involve the injection of public funds by up to 10,000 million.
The guarantees were made available by the Government sector with a view to overcoming the financial difficulties that prompted the crisis.Then, unlike now, there was concern for the deficit.
Thanks to them, the State charged an interest of between 2.5% and 5.5% and has already bagged a total of 400 million. Against the total outstanding pending return across the sector, amounting to some 81,000 million, Bankia has requested 35% above its weight in the whole Spanish financial system.
Bankia, the eighth bank nationalized since the start of the crisis
The fourth largest financial institution and the most exposed to the battered brick industry will be controlled directly by the State, which will be the hegemonic shareholder of Bank Savings Financial. “The Government will provide the capital that is strictly necessaryfor accurate write-downs,” Economics claimed in a statement tonight.
The matrix Bankia this week has been protagonist of economic news with the relay forced Rodrigo Rato first and the ‘cry for help’ from their new president, Jose Ignacio Goirigolzarri-after. Bankia has thus become the eighth entity that has had to engage the Government since the crisis began.
The first action of the new Board of Directors has been to propose that the state nationalize this entity. Shortly thereafter, the Ministry of Economy and Competitiveness confirmed that 100% nationalize Bank Savings Financial, which is the main shareholder of Bankia.
According to the note Guindos department, “drive” the process of conversion of the debt of the bank’s actions “as it is considered unlikely, given the status of the entity and the group that the repurchase of shares preference can be completed within 5 years. “