Spain to go to market to fund Bankia, regions -source
MADRID (Reuters) - Spain will recapitalise nationalised lender Bankia (BKIA.MC) by issuing new debt, not by injecting bonds into the lender, and will likely adopt on Friday a new mechanism to back its regions' debt, a government source told Reuters on Tuesday.
"There is a clear preference to tap the market. The other option (injecting state bonds directly into Bankia) is marginal," the source said.
"The (bank restructuring fund) FROB has liquidity and can tap the market. The Treasury also has a strong liquidity position. We'll choose one or the other mechanism."
The source also said the government would task the Treasury with issuing and distributing debt to the regions, under strict conditions of meeting deficit targets and implementing austerity plans.
(Reporting by Julien Toyer; Editing by Sonya Dowsett)
- Tweet this
- Share this
- Digg this
- UPDATE 1-Don't mess with nuclear Russia, Putin says
- Don't mess with nuclear Russia, Putin says
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis |
- Exclusive - Over 100 Russian soldiers killed in single Ukraine battle - Russian rights activists
- Scotland's pro-independence campaign gains on final TV debate - poll