Spanish Bank Changes EU Approved
Published / Last Updated on 27/11/2012
Spanish Bank Changes EU Approved.
Spain has secured permission from the European Commission to restructure four of its banking groups.
Last year, four banks were nationalised amid toxic debt problems: Bankia, Banco de Valencia, Catalunya Banc and NCG (Novagalicia). The European Commission has allowed three of the banks to have its debt restructured with the Banco de Valencia being sold to another Spanish banking group, Caixa.
Part of the restricting process will force some investors, in the form of corporate debt, to have the value of their debt reduced. That should go down well with investors.
Our view
The belt being pulled across the stomachs of southern Europe is ever tightening.