BKIA and Three Spanish Banks Receive EU’s Approval

European Union has given approval to BFA-Bankia SA (BKIA) and three other banks of Spain for bailout from government.

The approval has led the banks to receive recapitalizations in the coming month. Balance sheets of Bankia, Novagalicia Banco and Catalunya Banc will be declined by over 60% by the year of 2017 as compared to that in 2010.

The move regarding the restructuring plans is aimed at a good and strong financial system as told by EU Competition Commissioner, Joaquin Almunia. The decision taken by EU will help the FROB, rescue fund of Spain to get a sum of 100 billion euros ($130 billion) as support from it. As reported by Almunia, assets of cost 45 million Euros will be moved to Sareb bank of Spain.

"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", said Aluminia in a statement, as he commented over the bailout of Spain's euro bank.

He further added that he will be deciding on restructuring of Liberbank SA, Banco Mare Nostrum SA, Banco Caja 3 and Ceiss, on 20th of the next month.