Contagion seen limited as Bankia recap figure rises
Spanish savings group Bankia took another step towards full nationalisation on Friday as the Spanish stock market suspended trading in its stock. The suspension came as the bank’s board met to prepare an announcement in which Bankia is expected to ask for an extra €15bn of capital from the state to keep itself from collapsing.
However, bankers said the development was not surprising, adding that contagion to other Spanish institutions had been limited.
In a statement, Bankia said the board would aim to firm up its recapitalisation plans, having acknowledged a lack of precision on the figures.
Bankia needs around 14bn to meet government
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