MADRID – Spain's economy minister says the government will pump at least €9 billion ($11.3 billion) of public money into nationalized lender Bankia so it can meet new capital requirements.
The government is seeking to shore up Spain's banking sector against market fears about the country's financial health. A recession and an unemployment rate of nearly 25 percent have left Spain particularly vulnerable to the eurozone's sovereign debt crisis.
Many Spanish lenders are heavily exposed to Spain's burst real estate bubble. Bankia is the worst off of all, with €32 billion in toxic assets, and the government has taken control of the lender.
Economy Minister Luis de Guindos told lawmakers Wednesday the government is ready to provide further financial support when Bankia comes up with a recovery plan.