Spain’s government on Wednesday clarified its rescue plans for Bankia SA (BKIA.MC), saying it will pay for the EUR19 billion ($23.6 billion) bailout with cash raised through an auction of treasury bonds.
Finance Minister Luis De Guindos denied reports that the European
Central Bank rejected a plan to fund the ailing lender directly with
bonds it could exchange for cash from the ECB.
For their part, ECB officials signaled they would oppose any attempt to
fund Bankia via the central bank’s lending facilities, according to
people familiar with the situation. The ECB said Spain’s government
hasn’t contacted it about the Bankia rescue.
Spain is coming to the aid of Bankia, its third-largest lender by
assets, at a time when its finances are stretched to their breaking
point and the government is desperately trying to ward off an
international bailout.
Lol...its like watching NASCAR...round and round and round we go.
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