MADRID (Reuters) - Nationalised lender Bankia (BKIA.MC) will be recapitalised through the FROB bank fund, which will issue bonds, Spain’s Economy Minister Luis De Guanos said on Wednesday.
“It will be the usual mechanism, through the FROB issuances”, De Guanos told journalists after a parliamentary debate on Spain’s ongoing banking reform.
The FROB currently has more than four billion euros available while Bankia asked on Friday for a 19 billion euros rescue from the state.
He also said the country’s banking crisis does not begin and end with Bankia.
Reporting by Robert Hetz and Julien Toyer; editing Nigel Davies