facebook
twitter
rss
account
search
search
 

EU to bail out four Spanish banks

Nov. 28, 2012 at 1:28 PM   |   Comments

MADRID, Nov. 28 (UPI) -- The European Commission said it would loan $48 billion to four banks in Spain provided they follow restructuring recommendations.

To receive the funding, the banks will have to lay off thousands of workers, The New York Times reported Wednesday.

The move to rescue BFA/Bankia, NCG, Catalunya Banc and Banco de Valencia was "a milestone," said European Union antitrust commissioner Joaquin Almunia.

In prior bailouts set up by the European Union, funds have gone to governments, not private firms.

The bailout will make use of European Stability Mechanism funds and is part of a $130 billion program set up for Spanish banks.

So far, Spain continues to claim that not all of the $130 billion will be necessary to rescue its banking sector, which got into trouble as loans defaulted with global economic downturn coming on the heels of a building boom in Spain.

An audit conducted by consulting firm Oliver Wyman said Spanish banks would require $76.7 billion to return to stability.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
1
Hershey's new logo launched, compared to emoji poop
2
The 'Home of the Whopper' to keep headquarters in U.S.
3
Canadian media must broadcast official emergency notifications
4
France receives upgraded aerial tanker
5
Kurds raise oil funds for refugees
Trending News
Video
x
Feedback