facebook
twitter
search
search

EU to bail out four Spanish banks

Nov. 28, 2012 at 1:28 PM

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.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
North Dakota refinery completed
Optimism wins; crude oil recovers
First U.S.-made Kalashnikov AK-47s now being sold
SCOTUS says no to Gulf of Mexico spill appeals
More than $1B in new orders for Saab