The Spanish government eventually took over 45% of Bankia, Spain's third-largest bank by assets. The move came after concerns about the Bankia created financial equity and bond markets yesterday.
At first, the Spanish government would disburse public funds to Bankia 4.47 billion euros. But funding is changed to purchase 45% of ordinary shares Bankia.
Before the partial nationalization was announced, Prime Minister Mariano Rajoy Bankia assured that government will fully support and ensure the stability of the entire.
Bankia system. Bank of Spain said, they still must approve the conversion that also needs to be assessed together with other authorities.
After the resignation of Executive Chairman Bankia Rodrigo Rato, the Spanish equities slumped 2.8%, near its lowest level since. Bankia shares also slumped as much as 5.8%.
Yields on 10-year government bonds have an inverse relationship with prices, jumped 6% did not approach the level considered sustainable by the market.
Market turmoil also continued to occur despite the former Chief Executive Goirigolzzari competitor bank BBVA has been appointed as the new boss and the government promised Bankia will disburse funds for the troubled bank.
Last Friday, the government asked Bankia to set aside 30 billion euros of capital for their property assets. This takes the form of general rule that all property loans will be increased from 7% to 30%. Spanish banks currently has about 180 billion euro property loans in trouble.
Read More :Government of Spain Buy 45% Stake in Bankia
At first, the Spanish government would disburse public funds to Bankia 4.47 billion euros. But funding is changed to purchase 45% of ordinary shares Bankia.
Before the partial nationalization was announced, Prime Minister Mariano Rajoy Bankia assured that government will fully support and ensure the stability of the entire.
Bankia system. Bank of Spain said, they still must approve the conversion that also needs to be assessed together with other authorities.
After the resignation of Executive Chairman Bankia Rodrigo Rato, the Spanish equities slumped 2.8%, near its lowest level since. Bankia shares also slumped as much as 5.8%.
Yields on 10-year government bonds have an inverse relationship with prices, jumped 6% did not approach the level considered sustainable by the market.
Market turmoil also continued to occur despite the former Chief Executive Goirigolzzari competitor bank BBVA has been appointed as the new boss and the government promised Bankia will disburse funds for the troubled bank.
Last Friday, the government asked Bankia to set aside 30 billion euros of capital for their property assets. This takes the form of general rule that all property loans will be increased from 7% to 30%. Spanish banks currently has about 180 billion euro property loans in trouble.
Read More :Government of Spain Buy 45% Stake in Bankia
