MADRID Nov 25 European authorities will
transfer 35 billion euros to Spain's state bank rescue fund on
Dec. 15 in exchange for massive layoffs at Spain's four
nationalised banks, including state-rescued Bankia, El
Pais newspaper reported on Sunday.
The cash injection from European bailout funds will be
disbursed to troubled Spanish banks two weeks after it is paid
into Spain's bank restructuring fund, or FROB, the paper said.
Bankia, which sought a 23.5 billion euro bailout from the
state in May, is expected to be forced to lay off up to 6,000
people from its current 20,000 staff, while NovaGalicia Bank is
seen laying off 2,000 of its 5,800 workforce, said El Pais,
citing European and banking sources.
Bankia and NovaGalicia Bank declined to comment on the
report, which also said the banks would have to close 1,000
branches between the two of them.
Catalunya Caixa (CX) and Banco de Valencia, the
other two nationalised lenders, are currently being sold off,
and conditions would be imposed on the buyers, the paper said.
Spain's economy ministry also declined to comment on the
date the aid could be disbursed to the state rescue fund, or the
exact amounts the lenders would finally need.
The payment will be the first since the Spanish government
was granted up to 100 billion euros of aid in June, in a
European bail-out of the banking sector. It needs the money to
clean up the balance sheet of financial institutions hit by the
burst of a real estate bubble five years ago, which left them
loaded with 184 billion euros in toxic property assets.