Madrid plans to inject Bankia with debt

Article reported that the Spanish government was planning in September 2012 to provide €4.5bn of stopgap rescue money to Bankia, the nationalised bank, by injecting it with Spanish government debt, in a move likely to reignite debate over how states could the European Central Bank to recapitalise troubled lenders.

ESO: Background information: ECB chief and Spanish PM on collision course http://www.europeansources.info/record/ecb-chief-and-spanish-pm-on-collision-course/

ESO: Background information: Spain gives Bankia urgent cash boost http://www.europeansources.info/record/spain-gives-bankia-urgent-cash-boost/

El País, 2.9.12: Brussels holds back bailout funds until needs of banks clarified http://elpais.com/elpais/2012/09/02/inenglish/1346612396_051947.html

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