Bankia to book savings of 200 mln euros with 10-yr IBM contract

MADRID Fri Dec 21, 2012 8:37am EST

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MADRID Dec 21 (Reuters) - Spanish bank Bankia will book savings of around 200 million euros ($264.7 million) over 10 years after contracting IBM to help overhaul its technological infrastructure, the Spanish nationalised lender said on Friday.

Bankia will transfer almost 100 employees to the new entity which will be created from the joint venture with the U.S. technology company on Jan. 1.

Bankia aims to reduce its balance sheet by up to 60 percent and cut 6,000 staff by 2017 as a condition of an European cash injection of around 18 billion euros. ($1 = 0.7555 euros) (Reporting By Jesús Aguado; Editing by Paul Day and Hans-Juergen Peters)