Spain is planning to infuse €1 billion in capital to Banco de Valencia, Bloomberg reports. FROB, a state rescue fund, will provide Valencia with a €2 billion credit line and will take the lender under its administration.
The bank is part of the seven lenders that are to be seized or taken over by the Spanish central bank the Bank of Spain amidst the Spanish property crash. Valencia is 27 percent-owned by holding company Banco Financiero y de Ahorros,that controls Spain’s third-biggest bank Bankia.
Click here for the story from Bloomberg.