Spain urged to come clean on bank bailout plan
Daniel Wools - The Associated Press
The Bankia bank headquarters in seen in Madrid, Thursday May 31, 2012. The European Union urged Spain Thursday to come clean on how it plans to finance the overhaul of its banking sector, warning that uncertainty over this has contributed the recent market turmoil and soaring borrowing costs. The government nationalized Bankia earlier this month, and the euro 19 billion ($23.63 billion) in public money that will now be injected into it is more than twice what the government originally estimated would be needed.
A European Commission spokesman, Amadeu Altafaj, told Spanish National Radio that the conservative government in Madrid needed to spell out quickly how it plans to finance the recapitalization of troubled lender Bankia SA and whether there are other banks burdened by toxic real estate assets that might need assistance.
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