Stress test 'to show Spanish banks need up to $78bn'

21 September 2012

The independent stress test of Spanish banks is likely to show financiers need up to €60 billion ($78 billion) in capital to nurse them through their current crisis.

That is the opinion of Francisco Gonzalez, chairman of BBVA, who told an event in Madrid yesterday (20 September) that lenders are expecting to be informed of the results if this analysis over the next few days, Reuters reports.

Mr Gonzalez explained that a figure of "around 70, 75 or €80 billion" is likely to be the outcome of the investigation, although this includes the sum of approximately €20 billion that has already been issues to troubled companies.

Insiders with knowledge of the process told the news source that the Bank of Spain has already begun communicating with financiers about the results of the stress test, which is scheduled to be formally announced on 28 September.

A spokeswoman for the country's economy ministry indicated that Mr Gonzalez's estimations are expected to be accurate.

By Gary Cooper

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