Spain's NCG Banco faces 1 bln eur of uncovered losses -source

MADRID Thu Dec 19, 2013 10:34am EST

MADRID Dec 19 (Reuters) - Spain's nationalised NCG Banco, set to be taken over by Venezuela's Banesco, faces potential losses of 1 billion euros ($1.38 billion) that are not covered by provisions, a source at bank restructuring fund FROB said on Thursday.

Bidders for NCG had analysed the amount of loans and other assets at the bank that could go sour and not be repaid, or lose their value.

Banesco, which won the bid for NCG on Wednesday, was one of the only suitors that did not ask the government for extra state aid to cover potential losses.

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