Spanish banks ask for public aid. It is the case of Bankia group, which is preparing to ask for more than 10 billion euros, according to reports from the ABC newspaper. The bank is the fourth largest in the country and was born from the aggregation of seven Spanish savings banks in difficulty, even if it has now been at the center of market tensions for days, which in general are looking with concern at the Spanish banking sector. Last week it had plummeted on the stock market and then rebounded amid press rumors, then denials about a rush to withdraw deposits.
In fact, it is already under public scrutiny after the government announced on May 9 that the 4,465 billion euros in aid granted to Bankia were being transformed into shares. Now, according to Abc, the top management of Bankia will ask for further aid for these 10 billion through the purchase of shares in the controlling holding company, Banco Financiero y de Ahorros (Bfa). Since its introduction on the Stock Exchange in July 2011, the Bankia share has lost more than half of its value (it started at 3,75 euros), however today it still recovers a 5,35 per center to 1,85 euros.
He has already replied to this request the Spanish Finance Minister, Luis de Guindos, reiterating that the Iberian banks have no need for external aid, as the government has just asked the banks to make additional prudential provisions of 30 billion euros: “if the public aid fund for the sector is needed, it will be there to intervene. No outside help will be needed."
