Spanish banks need 76 BLN USD injection: audit report

Spanish banks need 76 BLN USD injection: audit report
# 29 September 2012 02:54 (UTC +04:00)
Baku-APA. Spanish banks require to be capitalized to the tune of 59.3 billion euros (76.3 billion U.S. dollars), the Ministry of Economy and Bank of Spain said on Friday, APA reports quoting Xinhua.

According to an independent audit by consulting firm Oliver Wyman, Spanish banks need the said amount if mergers taking place are not considered. If not considered, the figure would fall to 53.7 billion euros.

Bankia, Spain’s fourth largest bank, needs almost half of the total aid at 24.7 billion euros.

BFA-Bankia, Novagalicia Banco, Banco de Valencia and CaixaCatalunya -- all of which needed state help -- require up to 46.2 billion euros in total.

Banco Popular, Banco Mare Nostrum and the merger of Ibercaja, Liberbank and Caja 3 is also said to require a bailout.

On the other hand, Santander, BBVA, Caixabank, Sabadell, BBK-Kutxa-Vital, Bankinter and Unicaja were deemed to not require a cash injection. Out of the 14 Spanish financial institutions analyzed, seven of them do not have capital needs.

The European Union has offered Spanish banks a bailout of up to 100 billion euros. Some sources said the Spanish government is considering using the rest of the bailout to deal with its debt.

However, the Minister of Economy and Competitiveness Luis de Guindos said the bailout would only be used to recapitalize Spanish banks.