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Spain banks need 59 billion Euros

Posted on September 29, 2012

Spanish banks need 59.3 bn euros in loans’,spanish government says it may need to borrow about 40 billion euros, or 51 billion dollars, from the EU rescue funds to help clear up the bad debts in the country’s banking sector.Auditors commissioned by the Spanish government said on Friday that 7 of the country’s 14 banking groups could need a capital injection of up to 59.3 billion euros in total to survive a serious downturn.
The worst case is Bankia, which requires 24.7 billion euros. The bank was partially nationalized in May.
The Spanish government says individual banks are expected to raise some of the capital themselves, reducing the projected public injection from the region’s rescue funds to 40 billion euros.
The Spanish banking sector has been in difficulty since the real estate bubble burst in 2008.
Spain requested financial aid from the EU in June to help its ailing banks, and the EU offered up to 100 billion euros. Spanish government and the EU will discuss the final assistance package. Rescue funding is expected to be implemented in November.Media agencies