Minister: 4 Spanish banks need $1.9bn in EU funds

5 December 2012

Spain's four nationalized banks only need around €1.5 billion ($1.9 billion) from the European Union (EU) in their latest round of recapitalization.

That is according to Luis de Guindos, Spanish economy minister, who has said Bankia, NCG Banco, Catalunyabanc and Banco de Valencia will not require a vast sum to complete the second phase of the eurozone's cleaning-up process, Reuters reports.

Last week, policymakers at the EU approved aid of around €37 billion to assist the group of lenders through the opening stage of the plan, as well as a one-off sum of €2.5 billion to create a new so-called bad bank to help relieve the pressure on them.

However, Mr de Guindos has insisted the upcoming instalment will not need to be anywhere near as high, as the banks are beginning to restructure effectively.

"It will be a much lower amount of money, really much lower, around €1.5 billion at the utmost," he noted.

By Gary Cooper

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