Share Trading Suspended in the Spanish Lender Bankia, Pushing Spain Ever Closer to Needing a Bailout
Bankia Headquarters. Picture: The Guardian
The Spanish market regulator CNMV said it was “due to circumstances that may affect the normal share trading”.
There are reports that Bankia will ask the government for a bailout of more than 15bn euros ($19bn; £12bn) after a board meeting later on Friday.
Bankia, is Spain’s fourth-largest bank, was semi-nationalised two weeks ago because of its problems with bad property debt.
The Spanish government has already put in 4.5bn euros in state loans that the government converted into shares in the group in the part-nationalisation process.
Bankia’s parent company Banco Financiero y de Ahorros (BFA) has also had its shares suspended.
Bankia was created in 2010 from the merger of seven struggling regional savings banks.
It holds 32bn euros in distressed property assets.
The viability of Spain’s banking system is key to whether the country eventually needs to seek a bailout itself from the eurozone and the IMF.
You may have an interest in also reading…
World Bank: Tackling Development Crisis Through Financial Innovation
The World Bank uncovers fresh avenues to increase financing capacity. Global development faces multiple crises: Growing debt burdens, inflation, and
Sir Alex Ferguson: The Formula of Success as Told by an Endearing Control-Freak
Becoming the most successful and admired manager in the history of British football is no mean feat by any standard.
Joanna Lumley: Nepal’s National Treasure
Considered a “national treasure” in Nepal for her support of the Gurkha Justice Campaign, Joanna Lumley has few if any
