ESM announces Spanish bank funds ready
The European Stability Mechanism announced on Wednesday the release of its first financial assistance funds, nearly 39.5 billion euros ($52.0 billion) for the racpitalisation of Spanish banks.
"The ESM notes will be transferred to the FROB, the bank recapitalisation fund of the Spanish government, in the coming days," said a statement from ESM headquarters in Luxembourg.
The money will be directed at the following banks: BFA-Bankia, Catalunya-Caixa, NCG Banco and Banco de Valencia, as well as Spain's "bad bank," the SAREB Asset Management Company (AMC).
Klaus Regling, ESM Managing Director, said: "This is the first financial assistance provided by the ESM. It is an important event as the ESM has now started to actively fulfil its role as the permanent rescue mechanism for the eurozone."
© 2012 AFP