FRANKFURT (Reuters) - The European Central Bank denied media reports that it had rejected Spanish plans to recapitalize a Spanish bank using ECB funds, the ECB said on Wednesday, adding it is ready to advise on plans to inject capital into the country’s banks.
“Contrary to media reports published today, the European Central Bank has not been consulted and has not expressed a position on plans by the Spanish authorities to recapitalize a major Spanish bank,” the central bank said in a statement.
“The ECB stands ready to give advice on the development of such plans.”
The Financial Times said on Wednesday the ECB opposed plans to recapitalize troubled Spanish lender Bankia by indirectly tapping the ECB for cash.
Spanish economy ministry spokeswoman said earlier on Wednesday the government did not consult the ECB on its plans to recapitalize nationalized lender Bankia and will likely tap the markets to inject new funds in the bank.
Reporting by Sakari Suoninen; Editing by Toby Chopra