The Spanish government and the Bank of Spain have unveiled plans to provide up to EUR 9 bn in liquidity to troubled lender Caja Castilla La Mancha in what will become the country's first bank rescue in this financial crisis, the Financial Times has reported. The bank's directors are being replaced with central bank nominees. Spain's government said after an emergency Sunday cabinet meeting that the bank was 'solvent' but had 'liquidity problems' that would be solved by a loan from the Bank of Spain, backed by a state guarantee of up to EUR 9 bn.
The Spanish government and the Bank of Spain have unveiled plans to provide up to EUR 9 bn in liquidity to troubled lender Caja Castilla La Mancha in what will become the country's first bank rescue in this financial crisis, the Financial Times has reported. The bank's directors are being replaced with central bank nominees. Spain's government said after an emergency Sunday cabinet meeting that the bank was 'solvent' but had 'liquidity problems' that would be solved by a loan from the Bank of Spain, backed by a state guarantee of up to EUR 9 bn.
