ECB rejects Madrid plan to boost Bankia / Pressure on Madrid to probe Bankia’s fall

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Series Details 30.5.12
Publication Date 30/05/2012
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A Spanish plan to recapitalise Bankia, the troubled lender, by indirectly tapping the European Central Bank for cash, was bluntly rejected as unacceptable by the ECB, European officials said on the 29 May 2012.

News of the rejection came as Spain faced elevated borrowing costs in the bond markets, tried to persuade investors it can contain problems in a banking sector weighed down by €180bn of bad property loans and, on the day that saw its central bank governor stand down early.

Related Links
El País, 29.5.12: Bank of Spain governor brings forward departure from post
BBC News, 29.5.12: Spanish savings banks agree merger as debt crisis bites
ESO: Background information: Spain says help not needed to save banks
BBC News, 30.5.12: ECB decides against bailing out a failing Spanish bank
El País, 30.5.12: Spain’s risk premium at new high despite Brussels reprieve
El País, 31.5.12: Spain acted in “worst possible way” on Bankia bailout, ECB’s Draghi says

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