The head of the troubled Spanish bank, Bankia, has insisted that if the lender receives the 19 billion euros it asked for on Friday, it would not need any further funds to continue as a solid business.
At a conference in Madrid, the bank’s chief executive, Jose Ignacio Goirigolzarri also promised greater transparency shortly after announcing huge losses.
“We understand this group will not need any additional provisions; no additional money,” he said.
“We think with this we can make a financially solid entity that, together with the number of clients we have, will allow us to be optimistic and trust in the development of a solvent, efficient and profitable entity.”
The call for financial aid shortly follows the downgrade by Standard & Poor’s of Bankia and four other Spanish banks to junk status on Friday.
The banks were downgraded due to their high exposure to the country’s collapsed real estate bubble.
The banks all hold large amounts of soured investments, such as defaulted mortgage loans or devalued property. Bankia, the worst hit, holds 32 billion euros of these so-called ‘toxic assets.’
Copyright © 2014 euronewsMore about:
- 1Divers grapple with inhuman conditions as Sewol ferry salvage continues
- 2MH370: bad weather halts search as ‘unidentified material’ found on Australian coast
- 3War of words grows more heated as Russia accuses the US of ‘running the show’ in Ukraine
- 4Exhumations at suspected Serbia mass grave begin
- 5Transnistria territorially tempting to Russia
- 1TV newscaster keeps calm as quake hits Mexico
- 2South Korea: Dramatic amateur footage emerges of final moments before stricken ferry capsizes
- 3Scientists find new Earth-sized planet that could host life
- 4Divers grapple with inhuman conditions as Sewol ferry salvage continues
- 5Dragon docks at International Space Station
Wires > News
- 11:45 CET Libya faces enormous security challenge – U.S. diplomat
- 11:16 CET Obama reaffirms commitment to Japan on tour of Asia allies
- 10:56 CET U.N. Security Council members considering South Sudan sanctions
- 09:26 CET Three foreigners killed in attack in Afghan hospital – security…
- 09:25 CET Wage talks resume as South Africa platinum strike marks 13th week
- 08:36 CET Historic canonisation of two popes brings joy and controversy
- 07:48 CET Exclusive – Marubeni says Chinese authorities detain three staff…
- 07:03 CET Pakistan fighter jets target militant hideouts near Afghan border