Well-informed sources reveal that the Spanish Treasury would be ready to enter Frob, the bank bailout fund, a figure close to 6 billion euros, thus raising its availability to 15 billion, from the previous 9.
The news follows the announcement of Frob himself, who yesterday declared his decision to inject a capital of 4,5 billion euros into Bankia, a figure equal to the bank's net loss in the first half of 2012. This capital injection, which will be completed within the next week through cash and government bonds, would represent an advance on the aid that the European Union intends to allocate to help the banking sector. Furthermore, Madrid has already formalized a request for 100 billion in Brussels to reorganize its banking system.
In the meantime, the decline in spreads continues, with the Btp/Bund differential down to 431 points, as well as the Bonos/Bund, which dropped to 525, pending the next ECB Governing Council, which will be held on Thursday.
