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Article: Rescue fund for Spain's banks
- Article from:
- The Irish Times
- Article date:
- June 11, 2009
- Author:
CopyrightCopyright 2009 The Irish Times. Provided by ProQuest LLC. (Hide copyright information)
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SPAIN'S SOCIALIST government plans to reshape the country's
financial sector with the help of a [euro]9 billion rescue fund
aimed at troubled savings banks and set to be launched this month,
Spanish finance minister Elena Salgado said yesterday.
The fund - which could borrow to leverage itself tenfold and so
deploy up to [euro]90 billion to finance recapitalisations and
mergers - would enable the Bank of Spain to take control of banks
that run into difficulties following the collapse of the Spanish
housing market.
"In anticipation of possible problems, we thought it was a good
moment to go ahead with a restructuring," said Ms Salgado.
Spain's commercial banks and cajas de ahorros, its ...