BRUSSELS Nov 28 European Union competition
regulators approved on Wednesday restructuring plans for
nationalised Spanish lenders Bankia, NCG Banco
, Catalunya Banc and Banco de Valencia.
"The approval of the restructuring plans of BFA/Bankia, NCG,
Catalunya Banc and Banco de Valencia is a milestone in the
implementation of the Memorandum of Understanding between euro
area countries and Spain," EU Competition Commissioner Joaquin
Almunia said in a statement, referring to Spain's euro zone bank
The European Commission said Banco de Valencia would be sold
and integrated into Caixabank, and the other three
banks would need to cut their balance sheets by more than 60
percent over the next five years.
There will be a pay cap and a coupon payment and acquisition
bans on the banks during their restructuring period. Investors
will have to share the revamp costs, reducing the needed state
aid by about 10 billion euros.