Spain’s second largest bank BBVA has agreed to buy state-run Catalunya Banc for 1.19 billion euros.
This is a fraction of the 12 billion euros paid for the bank when Madrid nationalised it in 2011.
Spain’s bank rescue fund FROB said that BBVA made the best offer for Barcelona-based Catalunya Banc.
Madrid has been selling off banks and their assets that they have owned since the government received a 41 billion euro European bailout fund in 2011.
BBVA’s purchase will increase its Spanish loans by 14 percent, deposits by 23 percent and total customers by 18 percent.