Spain has formally requested €39.5bn of European funds to recapitalise its struggling banks, according to an Economy Ministry statement. The majority of the money, €37bn, will go to the four nationalised banks: Bankia, Catalunya Banc, NCG Banco and Banco de Valencia. A further €2.5bn will be channelled into the "bad bank" which is being used to absorb and quarantine toxic real estate assets.
The money should be paid to the state's banking fund FROB by December 12. Eurozone finance ministers are expected to formally approve the bailout this afternoon at a meeting in Brussels.
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